The Pension Protection Fund reports that the solvency ratio on a full buy-out basis has improved from 74% (with only 8% of schemes being in surplus) in March 2021 to 112% in March 2023 (with 63% of schemes being in surplus). This means that buying out with an insurance company is now affordable for many private sector schemes. However, trustees now have more to consider before handing over actuarial surpluses to insurance companies and many schemes are potentially looking at longer-term investment horizons.
