WTW launches streamlined longevity swap solution for sub-£1bn pension schemes

WTW has launched Longevity Stream, a new streamlined longevity swap service for UK defined benefit (DB) pension schemes with £100m to £1bn of liabilities. 

The aim is to make longevity swaps easier and cheaper for smaller and medium-sized schemes that have found them hard to access in the past due to costs and complexity.

The new service uses fixed fees and pre-negotiated contracts, created in partnership with legal advisers CMS. 

Trustees get access to a panel of global reinsurers, with Zurich acting as intermediary. 

The process has been simplified to help schemes implement longevity swaps more efficiently and allow for future flexibility, including run-on strategies and a smooth transition to bulk annuity if needed.

Rhys Mellens, senior director at WTW, said: “Demand for longevity swaps has grown in recent years, with schemes increasingly looking to manage longevity risk, either as part of a run‑on strategy or to lock down a key driver of future buy‑in pricing.

“We are seeing increased interest from schemes that want to access this market but have been held back by the perceived complexity and cost. 

“Longevity Stream removes those barriers, giving schemes a more efficient route to market whilst retaining future flexibility and enabling them to access the attractive pricing currently available.”