Record Buyout Conversions Fail to Reduce Growing Insurer Backlog: Barnett Waddingham

Key Takeaways

• 160 DB schemes bought out in 2025, up 30% YoY
• Projected 300 buyouts in 2026, but backlog may exceed 800 schemes
• Only 28% of 2023 buy‑ins reached buyout; 9% for 2024
• Well‑prepared schemes can complete buyout in under two years
• Rising insurer capacity offset by influx of smaller schemes

Pulse Analysis

The UK defined‑benefit market is witnessing a paradox: record‑high buyout conversions coexist with an expanding pipeline of unfinished schemes. Barnett Waddingham’s latest survey reveals 160 schemes transitioned from buy‑in to buyout in 2025, a 30% jump from the prior year, and forecasts up to 300 completions in 2026. Yet, with more than 400 buy‑in deals slated for the same period, the number of pending schemes is set to surpass 800, underscoring a capacity mismatch that could pressure insurers and sponsors alike.

Longer timelines are now the norm. Only 28% of schemes that entered buy‑in in 2023 have reached buyout, and the figure drops to a mere 9% for 2024 transactions. The survey points to data quality, benefit cleansing, and the growing share of smaller schemes as key bottlenecks. Even as insurers expand capacity, each new buy‑in demands fixed resources for actuarial analysis, risk transfer pricing, and regulatory compliance, diluting the impact of additional capacity. The market’s emerging benchmark – a three‑year horizon from buy‑in to buyout – reflects these operational realities.

For scheme sponsors, the findings send a clear signal: preparation is the decisive factor. Projects that invest early in robust data governance and disciplined project management can achieve buyout in under two years, outpacing the market average. As competition for insurer capacity intensifies, engaging specialist advisers early becomes critical to maintain momentum and avoid costly delays. Looking ahead, the backlog is likely to persist, making strategic planning and data readiness essential for any sponsor aiming to de‑risk its pension obligations efficiently.