The Mercer Global Pension Buyout Index allows you to monitor the general trend in the pricing of pension bulk annuity transactions in the US, UK, Ireland, Canada, Germany and the Netherlands. Mercer uses up-to-date pricing information from each country to estimate the cost of insuring a sample plan’s current retirees as a percentage of the equivalent estimated accounting liability.
The chart shows estimated annuity prices from insurers as a percentage of accounting liability in each of the five countries. For example, where a line is at the 113% level, this means that Mercer expects the average price of a pension annuity transaction for current retirees to be broadly 13% higher than the equivalent accounting liabilities. The solid index line shows the average price of pension annuity transactions as a percentage of accounting liability across the five locations and draws upon information such as each country’s market size.