Finish Strong: Why Small Schemes Need the Right ‘Finishers’ for Bulk Annuity Success

One of the most vivid memories from my childhood is watching the Euro 96 penalty shootout - England’s heroes dressed in grey and ‘that miss’ that prolonged the 30 years of hurt. What I didn’t know at that point, was that those years of hurt (for the men’s team) would still be going by the time my eldest child was the same age I was back then.

The Men’s World Cup is just around the corner, but one of the things the England Women’s team – the Lionesses - did so well when they won the Euros was the use of impact substitutes - or finishers as their manager, Sarina Wiegman referred to them. Strong finishes often make the difference between winning or losing. For trustees of smaller defined benefit (DB) pension schemes, the journey to their endgame - most likely by securing a buy-in with an insurer - is no different. Picking your insurer is only half the story. The win only comes once you have prepared your investment strategy, managed every risk, and paid everything across - successfully closing out the game.

Having ‘finishers’ in your side can make a real difference when trying to secure a buy-in, particularly for small schemes. Investment risk settlement specialists can help align your strategy, negotiate price locks and transition your assets to secure the win.

The market has changed and it’s in your favour

Let’s start with some good news: the smaller end of the bulk annuity market is more competitive than ever. Insurers are actively seeking well-prepared smaller schemes, driving down premiums and making the process smoother. Insurers can now transact smaller deals more efficiently and small schemes can have competitive tenders. But just as in football, you only get the result you want if you compete for the full 90 minutes, not just the first half. Make sure you have finishers in your side who know how to navigate the final stages – someone who can ask the right questions of insurers, negotiate price locks and who have the experience to know the art of the possible.

Putting in the hard yards

Winning in this competition is not just about negotiation or picking the right insurer. It is about detailed planning and making sure your investment strategy is fully aligned with insurer pricing. For smaller schemes, this is even more important - pooled funds and potential weekly dealing cycles mean you cannot afford to be caught out of position. Any mismatch or delay can cost your members real value, just as a lapse in concentration can cost a team a goal in injury time.

Too often, smaller schemes assume they have no negotiating power and that there is no point in asking for much from insurers when it comes to providing a well-aligned price lock. It is this price lock that helps provide clarity on the ultimate premium and certainty on the overall affordability of the transaction.

That’s where having a true ‘finisher’ makes all the difference. At Aon, we help you take the initiative - making sure you are holding the right assets, managing transitions with precision, and locking in value at the crucial moments. Our experience shows that proactive planning and specialist execution consistently deliver better outcomes for smaller schemes. We want to get you into a good position and then make sure you stay there.

A finisher makes the difference

Our finishers have achieved some great things for clients:

• securing a £2m in-specie transfer to pay the premium, removing any transitional risks
• Putting in place multi-stage price locks to manage risks and lock in gains relative to pricing along the way, saving one client over £250k
• securing full alignment with existing portfolios
• utilising low cost, quick to transition buy-out ready credit to align with insurer pricing in the run-up to buy-out and during the price lock period
• negotiating a premium discount because of the transition plan we put forward.

Proactivity was key, we were able to move quickly to minimise any mismatch risk. And when it came to transitioning assets - careful, experienced management was key. Our team supports trustees throughout, ensuring nothing is missed and the process runs smoothly. This can be an incredibly risky area, and it is here that having finishers can really help.

Closing out the game¹

Aon’s investment risk settlement team has a proven track record of helping small schemes achieve big results. We combine deep market insight with hands-on experience, tailored to the unique challenges of sub-£100m schemes. Since 2019, over half of all Aon transactions were for schemes less than £150m in size. Our approach is not just about getting you to the endgame, it is about making sure you finish it with the best possible outcome for your members.

Final Thoughts

If you are a trustee of a small DB scheme, do not be satisfied with a half-time lead. The market is open and competition is fierce, but with the right finishers on your team, you can achieve a secure, well-priced buyout for your members. With Aon’s finishers guiding you through the full 90 minutes and beyond, you’re not just participating - you’re playing to win.

Trustees may not be able to influence what happens on the pitch over the summer, but by getting their own finishers in place, they can at least make sure that, for their members, financial security does come home – whatever happens this summer.

Luke Hammond, UK investment associate partner at Aon

1. Wiegman hints she won't start match-winning substitutes in Sunday's Euros final | ITV News

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