Sovereign Annuities

The Society has issued a briefing statement on the “sovereign annuities” concept that has attracted media attention recently.

We believe that the sovereign annuity concept could play a significant role in alleviating the funding difficulties currently faced by most defined benefit pension schemes, and it could alleviate exchequer funding requirements at the same time.  However, we emphasise that the concept is not a substitute for the fundamental reform of the pensions system that is urgently needed – it is a short-term tactical measure, and one that should be introduced only in a way that averts potential unintended consequences and market distortions.

Briefing Statement