Why you might want to explore pension risk transfer

Defined benefit pension liabilities can become a major financial pressure for many organisations. Investment performance, members living longer, shifts in interest rates and rising inflation can all increase risk - making it essential to consider a structured de‑risking approach.

How we can help

Our pension risk transfer solutions are bulk purchase annuities. These are insurance policies that help secure members’ benefits by removing risks to the scheme. There are two types of bulk purchase annuities, a buy-in or buy-out, and we offer both.

  • Buy-in

    Covers all the scheme’s future pension payments, removing investment, longevity, interest rate and inflation risk. We make regular payments to the scheme that cover the benefits secured - the scheme remains responsible for making payments to members. The buy-in is effectively an asset of the scheme.

  • Buy-out

    Covers all the scheme’s future pension payments, removing investment, longevity, interest rate and inflation risk as well as the risks of future running expenses for the scheme. Individual policies are issued to the members by us, we pay their benefits directly to them - and take responsibility for ongoing administration.

Many DB pension schemes adopt a buy‑in as an initial step towards a buy‑out. This approach allows insured liabilities to progress to a buy‑out stage once the scheme has achieved its objectives in terms of funding, data accuracy and governance.​

Align & prepare: Trustees confirm objectives, appoint advisers, and prepare data and benefit specifications.

Approach the market & select partner: The scheme goes to market, reviews insurer quotations, and appoints a preferred provider.

Enter buy-in: The policy incepts and the insurer starts paying benefits to the scheme.

Data cleanse: The scheme and its advisers complete data cleanse, together with the insurer. A designated Transition Manager will be appointed to every Scheme to help with this.

Transition to buy-out: The members become policyholders of the insurer. The insurer will pay benefits directly to members.

In buy-out: Members receive access to a comprehensive self-service portal, a designated telephony service and additional support to help manage their retirement journeys.

At a glance

Since 2016 we’ve helped trustees and sponsors de-risk over £32bn* and secure the benefits for c.227,000* pension scheme members.

* All figures are correct as at December 2025.

Meet our award-winning team


  • It was clear that Standard Life was dedicated to meeting the needs and objectives of the Scheme, showing an out of the ordinary level of flexibility and collaboration for a smaller transaction, and the Trustee is delighted with the outcome."

    - James Mullins
    Partner and Head of Risk Transfer Solutions
    Hymans Roberston


  • Working collaboratively with Standard Life, the result has been to provide real certainty to over 20,000 members and to the sponsor by making a bulk annuity affordable at the current time, when previously it was considered to be years away."

    - Harry Harper
    Risk Settlement Partner
    XPS Pensions Group


  • We chose Standard Life taking into account a broad range of factors, including Standard Life’s willingness and ability to work closely with the Scheme’s administration team and minimise impacts on member service and experience."

    - Ciaran McMenamin
    Chair of Trustee of the Finning Pension Scheme

 

Contact us

Get in touch to discuss your scheme's requirements and hear more about how we can help.

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