What does the term ‘buyout’ actually mean?

With the backdrop of rising interest rates leading to lower pension scheme liabilities on average, many schemes have seen their funding positions improve steadily in recent years. As a result, we are hearing increasing talk of the terms ‘buyout’ and ‘buy-in’ in the world of defined benefit pensions.

But what do these terms really mean? And how can schemes prepare for buyout?  Lisa Purdy, LGIM’s Head of Pooled Solutions, explains all.

For listeners who would like to read more on the subject, please see the following pages on our website:

https://www.legalandgeneral.com/institutional/pension-risk-transfer/what-we-offer/buyout/

https://www.legalandgeneral.com/institutional/pension-risk-transfer/what-we-offer/buy-in/

This podcast was recorded on 21 March 2023 and is hosted by Anthony Penson, Institutional Content Manager.

For professional investors only. Capital at risk.