The pensions industry has recently undergone drastic change.

Investment consultancy and management, as well as professional trusteeship, are areas in the industry that have been newly transformed.

Jane Kola explains that with occupational DC rapidly consolidating due to an unpalatable regulatory environment, there is a possibility that standalone DC trusts will become an endangered species within a few years. DB’s current slower rate of amalgamation may turn out to have provided a false sense of security.

Jane commented:

“As funding improves more will look to move schemes to the bulk annuity providers.

“That market is now very busy and the much-talked-of capacity crunch seems to have arrived with the insurers being more picky about which schemes to insure leaving some in a close to buyout limbo.

“For the less well funded but still solvent there is a respectable chance that some sponsors will see the attractions of the commercial consolidators just entering the fray now. It will take time for those to get traction, but if the buyout market becomes crunched these might fill the void for the schemes in limbo and those heading in that direction.”

Read Jane’s comments in Pensions Age