H1 2025 – a market in motion

The first half of 2025 delivered a busy start for the bulk annuity market, albeit at a lower level than in H1 2024. This reflects a continued appetite for de-risking, with smaller schemes in particular taking the opportunity to lock in member benefits and remove administrative burdens.

Why? Funding levels have been strong for some time, but trustees are also increasingly focused on the long-term cost and complexity of running schemes, which is particularly relevant for smaller schemes whose costs-per-member are outsized compared to bigger schemes. For many, a BPA has become the clearest route to certainty – not just for members but for their own governance and workload, and for the benefit of the sponsor that must prioritise the delivery of goods and services.

“Funding levels have been strong for some time, but trustees are also increasingly focused on the long-term cost and complexity of running schemes”

But H1 was also a moment for reflection, seen in the lower volumes. The government’s plans to make surplus extraction easier, as set out in the Pensions Bill, gave some schemes reason to pause, while market developments – including new entrants and consolidation such as Athora’s proposed acquisition of PIC and our own recently announced proposed acquisition by Brookfield – are reshaping the landscape. This is a market with more capacity, more options and more scrutiny than ever before, which is a powerful advantage for trustees and members, but requires careful thought before decisions are made.

So what?

The message for trustees and sponsors is clear: if you’re considering your endgame, the market is primed to deliver. But with more choice and a fast-evolving regulatory backdrop, preparation matters more than ever. The long-term risks of run on aren’t changing. Investment and longevity risk keep many trustees up at night, knowing they can change in the blink of an eye. Data accuracy and security are a never-ending challenge and are only getting more complicated, further increasing the administrative burden and costs. And while surplus extraction being easier may bring benefits, new legislation won’t be in place until 2027. Our view also remains that the safest and most effective way to release surplus is with an insurer-led solution that secures member benefits at a fixed cost.

Trustees who understand their data, make decisions on GMP equalisation early and plan around their risk appetite will be best placed to act quickly when the opportunity arises.

At Just, we expect transaction volumes to rebound in H2, continuing the pattern of recent years where H2 activity significantly outpaces the first half. And as pricing speed and flexibility become key differentiators, pricing solutions like our Beacon platform are helping schemes move from decision to execution faster than ever.

The bulk annuity market is maturing fast, but its goal remains simple: delivering certainty and security for members. For schemes that are ready, the opportunity to make that leap is only getting stronger.