Marvin OnumonuThe UK pension risk transfer market is set for growth in 2026, according to the annual de-risking report from WTW.
Activity is expected to be higher than 2025, as larger schemes complete more de-risking deals.
WTW found total risk transferred to insurers and reinsurers could reach £70bn in 2026, up around 15% from last year.
The bulk annuity market is predicted to top £50bn, driven by bigger deals and steady pricing.
Longevity swaps of up to £20bn are also expected, mainly from large schemes, with interest increasing among schemes of all sizes.
Gemma Millington, senior pensions risk transfer director at WTW, said: “Schemes continue to benefit from improved funding levels and strong insurer appetite, which together create very favourable conditions in which to secure members’ benefits.
“The risk transfer market is entering 2026 with strong momentum.
“Schemes continue to benefit from improved funding levels and strong insurer appetite, which together create very favourable conditions in which to secure members’ benefits at compelling prices.”
Millington added: “We expect this window to remain open through 2026, but trustees will need to be prepared and strategic to take full advantage.
“In 2025, the UK risk transfer market passed £0.5 trillion in transactions since the market was founded.
“This is a significant milestone in the UK defined benefit pensions industry and we are incredibly proud to have led the advice in over 25% of deals by value.”
Alternative risk transfer is also set to rise, with the superfund market expected to see more entrants and transactions doubling in 2026.
At least one new risk transfer solution is also expected during the year.
Several UK insurers are likely to be bought by overseas investors in early 2026.
WTW does not expect these deals to cause major market changes but advises trustees to carry out thorough financial checks and watch for any short-term disruption.
Trustees are now focusing more on cyber risk when selecting insurers, as over 40% of UK businesses faced a cyber breach or attack in 2025.
Insurers able to show strong controls and response plans will stand out in the market.
WTW also expects insurers to offer more support to help schemes move from buy-in to buyout, such as extra data cleansing and help with GMP equalisation.
Millington said: “As we look ahead, 2026 offers trustees a powerful combination of market depth, competitive pricing and expanded choice.
“But the scale of activity means that timing and readiness are more important than ever.
“Schemes that plan early and engage collaboratively with the market will be best placed to secure exceptional outcomes for their members.”
