Buyout

Government intervention in the pensions system seems to be a frequent and favourite pastime in the UK. Indeed, the usual response of the industry to the seemingly perennial tinkering is to groan and ask, politely, to be left alone. However, the current consultation ‘Options for Defined Benefit schemes’ stands out in that it is to be welcomed. Read thoughts from Kerrin Rosenberg, CEO Cardano Investment on the proposals and the impact on the UK economy.

In this approaching endgame differently video series, we outline the different types of pension scheme risks and how Cardano can help you deliver the right risk solution. 

Today Walgreens Boots Alliance and the Trustee of the Boots Pension Scheme announced a buy-in with Legal & General. This is the largest single transaction ever undertaken in the UK. Cardano acted as the lead broker to the transaction and lead strategic advisor to Walgreens Boots Alliance.

Clara’s first consolidator transaction is a significant milestone for the pensions industry. This deal moves the goalposts and gives another alternative to buyout much needed credence. What does this all mean for pension schemes and endgame?

For many UK pension schemes, the current macro-economic environment has brought their endgame into sharp focus. Whilst buyout is often seen to deliver the ‘gold standard’ of protection to members and, for many schemes remains a sensible option, trustees and their sponsors should take the opportunity to consider the alternative routes available. In this article, Adolfo Aponte, Managing Director at Cardano Advisory, explores the merits of buyout and how trustees can challenge herd mentality.