Bulk and individual annuity providers played a key role in the UK’s growth agenda in 2024, raising the domestic investments they hold by £22 billion to £201 billion over the year according to the latest data from the ABI.1
Of the total £317 billion held by annuity providers in investments in 2024, 63% was held in UK assets, supporting projects that positively impact communities across the country.
The data also shows insurers held £119 billion (38%) in private markets both in the UK and abroad. These investments channelled money into infrastructure, housing, and regeneration projects which offer long-term stability and predictable cashflows to pay pensions whilst supporting economic growth.2
UK investment through the bulk annuity market is expected to remain strong as more companies transfer their defined benefit pension liabilities to insurers. This guarantees members’ pensions while helping companies strengthen their balance sheets for greater financial certainty. In 2024, the number of people with pensions protected in this way grew to nearly 2.3 million, with insurers paying out £10 billion to recipients.
The market supports employers with DB pension schemes of all sizes. In 2024, almost three quarters (72%) of all schemes whose pensions are secured by insurers were under £50 million in size. Of these, 56% were under £10 million in size with an average of just 48 people per scheme.
In contrast, schemes valued at over £1 billion accounted for just 2% of all bulk annuities held by insurers. These have an average of 28,300 people per scheme, and represent 45% of people whose retirement is secured through the market.
Bulk purchase insurers are a powerful engine of UK growth. Alongside providing millions of pensioners with the security of a guaranteed income for life, paying £10 billion in pensions in 2024, our members invest at scale in key UK growth assets, delivering benefits for the wider economy and society. We will continue to work closely with government to support a strong pipeline of investable opportunities and sustain this positive momentum.
Head of Long-Term Savings Policy
1. Based on data from annuity providers’ asset allocations (2024). This data seeks to capture all investments backing annuity business, both individual and bulk annuities. Data does not include L&G.
2. This is the first time the ABI has collected data into annuity providers’ private market holdings and bulk annuity scheme size.
For more information, please contact [email protected]