Claire Altman, Managing Director - Pensions Risk Transfer (PRT) & Individual Retirement at Standard Life, comments on the outlook for the PRT market for the rest of 2026:

  • UK PRT volumes of around £35bn to £40bn expected in 2026
  • Competitive market dynamics may persist in the short term
  • Endgame options in focus amid pending regulatory clarity

The UK Pensions Risk Transfer (PRT) market remains highly active.  While some schemes have paused to assess their endgame options, others remain firmly on track to execute on their plans by seizing attractive pricing opportunities in the bulk annuities market.  The remainder of 2026 will be defined by this divergence in approach, as schemes respond to the current mix of market opportunity and evolving regulatory clarity.

 

Market dynamics: scale, competition and capacity

While the first half of 2026 has been driven by small and mid-sized transactions, dynamics may shift in H2 as multi-billion-pound schemes come to market, having spent time preparing data and firming up buyout strategies. The timing of these transactions could have a significant impact on total market volumes for 2026 as well as pricing dynamics. 

The return of these larger schemes has the potential to play a role in shaping insurer capacity and pricing. It remains to be seen how long favourable supply and demand dynamics will persist.
For those schemes looking to seize the market opportunity in the near term, preparation and readiness will be key.

 

Regulation is shaping behaviour, but certainty remains limited

The Pension Schemes Act has sharpened the focus on endgame strategy, particularly the balance between run-on, insurance and the use of surplus. However, much of the detail is still to come, leaving trustees weighing whether to act now or wait.

Recent research from the PPI highlights the risks of delaying, showing that funding positions can shift when assessed against buyout costs and remain sensitive to market movements. Even for well-funded schemes, what appears as surplus today may act more as a buffer against future volatility than genuinely excess capital.

The Government's planned review of Flexible Apportionment Arrangements highlights that regulatory safeguards are still evolving as new DB models emerge, potentially strengthening the appeal of established routes such as buy-in and buyout.

Against this backdrop, while run-on and alternatives are a bigger part of the discussion, ongoing uncertainty and market risk mean many trustees are still likely to favour buy-ins and buyout to lock in gains and deliver certainty for members.

 

Innovation and member experience

Non-price factors are expected to continue taking centre stage for the remainder of the year, particularly member experience and transition from buy-in to buyout.

Standard Life research earlier this year highlighted how member confidence can dip at key moments of change, especially around buyout, underlining the importance of clear, simple communications throughout the process. It’s no surprise that member experience is becoming a key differentiator between insurers.

Reflecting these findings, insurers are responding by investing in their policyholder offerings. Propositions are evolving towards more personalised tools, additional guidance and digitally enabled or AI-supported member interactions. And there is recognition that the availability of multiple communication channels, such as telephony services alongside digital portals, is the best way to address members’ different preferences.

 

Execution and buyout transition becoming key differentiators

Beyond pricing and member experience, the pathway from buy-in to buyout is rightly an important factor for trustees. Record buy-in volumes are feeding through into post-transaction activity, putting greater focus on an insurer’s ability to deliver a smooth and timely transition. This reflects a shift towards viewing buy-in to buyout as a structured journey, with clear phases around preparation, transaction and transition. 

Data readiness, GMP equalisation and administration quality remain hot topics for DB schemes. Trustees are prioritising insurance partners that can offer a clear and efficient route through this process, and recent transactions highlight how this can translate into materially faster outcomes. 

For example, Standard Life’s £700m deal for the Deloitte UK scheme earlier this year saw the scheme move to buyout in just over three months. This demonstrates how parties can work together on an accelerated timetable following early data preparation and a pragmatic approach to post-transaction work. 

Overall, the key trend shaping the UK PRT market in the second half of the year will be the choices individual schemes make, as trustees either move ahead with transactions or wait for greater regulatory clarity. Schemes that are already committed to their endgame strategy and well prepared to proceed are likely to be in a strong position to act. With favourable pricing and strong insurer appetite, there remains a clear window of opportunity for those ready to transact.
 

 

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About Standard Life:

Standard Life is a retirement specialist focused entirely on retirement saving and income.

We are proud to manage around c£317bn in assets on behalf of our 12 million customers, and we champion the belief that everyone's journey to and through retirement can be better. 

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