Competition cuts cost of buy-out market

It says the findings from a pricing analysis reveal the cost of buying-out pensioners’ benefits has fallen 6.5%, while the cost of buying out deferred members' benefits has dropped more than 11%. Paternoster, one of the most recent entrants to the bulk annuity market, says these price savings are positive news for trustees looking to secure benefits for members of their final salary scheme. Mark Wood, chief executive of Paternoster, says the cost reduction is predominantly down to the increased yields on bonds invested, as the cost of providing a given level of pension falls as yields r...