On point paper:
Will my company pension end up being paid by an insurance company - and should I care?

Media centre

In the UK today there are roughly ten million people with pension rights built up from a private sector job that offered a ‘Defined Benefit’ (DB) pension.

Five years ago, fewer than 1 in 10 members had their pensions backed by an insurance company. New figures from LCP reveal that around 1 in 6 members have now been insured and we estimate that this will rise to 1 in 3 by the middle of the 2020s.

This paper focuses on the entire industry that exists to make sure that pensions are paid this year and in the decades to come and examines what goes on ‘under the bonnet’ of many pension schemes. It takes a deep dive into one specific way in which company pension schemes are seeking to guarantee these pensions – a process known as a ‘buy-in’ or ‘buy-out,’ looking at what this actually means for your pension.

Read the paper

Key discussion points include:


  • The risks that pension schemes face when trying to build up enough money to meet their pension promises

  • What happens to your pension if the sponsoring employer goes out of business before all the pensions have been paid

  • Some of the steps that pension schemes take to try to reduce the risks that they face, including pensions insurance arrangements and what this means for you

What's on point? 

LCP’s on point papers delve behind the headlines of topical issues and news on the pensions and finance agenda. Our experts give their insight and analysis on a variety of topics, shining a light on potential policy responses, outcomes and solutions.