Almost a third (31 per cent) of pension professionals believe that more than half of defined benefit (DB) schemes will complete the transition from buy-in to buyout within three years, according to polling conducted by the Society of Pension Professionals (SPP).

The findings were shared at the SPP’s DB risk transfer event, Navigating Post-Transaction Challenges.

During the session, attendees were asked what percentage of schemes they expected to complete the transition from buy-in to buyout within three years.

While 31 per cent said they believed between 51 per cent and 100 per cent of schemes would do so, the majority (69 per cent) expected half or fewer schemes to reach buyout within that timeframe.

The most commonly selected response, chosen by 47 per cent of respondents, was that between 26 per cent and 50 per cent of schemes would complete the transition within three years.

BESTrustees professional trustee, Sanjay Gupta, who chaired the event, said that although appetite for buy-ins remained strong, completing the journey to buyout could be a lengthy and complex process.

“Trustees must be prepared for a complex post-transaction phase - from data cleansing and benefit specification to insurer engagement and governance sign-off," he warned.

"Careful planning, clear communication and early preparation are critical to ensuring schemes can move efficiently from buy-in to buy-out within a realistic timeframe.”

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