Royal London has announced plans to enter the UK bulk annuity market, after completing its first buy-in deal with the trustees of the Royal Liver UK pension scheme in November 2023.

The deal covered all the benefits of the scheme for all deferred pensioners and current pensions, removing the investment and longevity risk for the members of the scheme, the group's annual results confirmed.

In addition to this, Royal London entered into a separate policy in January 2024 with the trustees of the Royal London Group pension scheme, which partially covered the scheme benefits.

"Through these transactions we have extended our annuity capabilities in advance of an intended participation in the bulk purchase annuities market, focussed on providing a competitive solution to the trustees of defined benefit (DB) pension schemes," the group stated.

The group suggested that the acquisition of the remaining stake in the Responsible Group in January 2024 will also enable it to deliver "innovative later life solutions" and scale the provision of later life lending.

"The transaction strengthens our support for advisers and customers as they look for solutions in funding later life needs," it added.

"The market offers customers additional choices at retirement, especially those who have property wealth but insufficient pension savings to support their desired standard of living.

---