Pension Risk Transfer Poll Infographic

How the current market environment is impacting pension de-resking

For over 20 years, MetLife has been tracking pension risk management trends and developments. MetLife, as a market leader, is deeply invested in understanding the factors contributing to the record number of pension risk transfer transactions. As defined benefit (DB) pension plan management becomes more difficult and costly in today’s challenging market environment, most companies are evaluating the long term viability of maintaining their DB plan. Despite their decline in popularity, DB plans must continue to provide retirement security for millions of retirees for many years to come. To keep their benefit promises, many companies are transferring their pension plan obligations to an insurer. While there is a range of de-risking strategies available to pension plan sponsors, a group annuity contract is the most effective way to fully transfer pension risk.

A majority of plan sponsors are considering a pension risk transfer option in the next five years

Geopolitical uncertainty, COVID-19 and other market developments are driving many plan sponsors to transfer pension risk.

Impact of specific market forces on de-risking initiatives 

With recessionary concerns looming, C-suite executives are scrutinizing their company’s financial performance and taking a more active role in de-risking initiatives.

C-suite recent DB plan actions

More than half of plan sponsors are now likely to pursue buyouts to achieve de-risking goals, up 23% since 2020

Over 100 Years of Annuities Experience

When it comes to reducing pension risk, 97% of plan sponsors prefer to work with an insurer that has significant, long-term experience.

MetLife introduced the first group annuity in 1921. Today, MetLife makes over $3.8 billion pension payments per year for nearly 885,000 group annuity participants.¹

For more information on pension de-risking trends, download your free copy of our 2022 Pension Risk Transfer Poll today.