New research from Legal & General finds that those with a Defined Benefit (DB) pension scheme are valuing the security of their pension more following the coronavirus pandemic.
9 Nov 2020
Legal & General conducted the survey of grandparents and parents across the UK looking at how Covid-19 had made them think differently about their finances. The findings show that one in five (21 per cent) of respondents with a DB pension scheme value the security of their pension more due to the pandemic. This is a third more than those with a Defined Contribution (DC) pension (15 per cent).
The findings also show that one in 10 (10 per cent) of respondents with a DB pension said the security of their pension income has made them more likely to gift or loan money to loved ones as part of their retirement plans amid the pandemic, which is twice as likely as Defined Contribution (DC) scheme member respondents (five percent).
There are over 10 million members of DB schemes across the UKi and the security of their pension doesn’t just impact them, it affects their families too. Pension security can be a fundamental part of financial planning for families, which has concerned many during the lockdown.
Laura Mason, Chief Executive Officer, Legal & General Retirement Institutional: "The events of this year have led to uncertainty for many and, understandably, more people are thinking about their pension income in retirement and how it will affect their loved ones. Millions rely on their pensions to provide them with a comfortable retirement, and our latest research highlights how many now value the security of their pension more than before.
We’re pleased to be able to help provide reassurance and security to Scheme members with our Pension Risk Transfer (PRT) offering and are proud of the excellent customer service provided to all members we look after."
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
Legal & General Retirement Institutional (LGRI) works with trustees and sponsoring companies of defined benefit (DB) pension schemes of all sizes to settle their pension obligations and secure scheme members’ benefits, through a full range of buy-ins, buyouts and other de-risking solutions. Our Client Services’ 12-month rolling Net Promoter Score (NPS) is above 70, which is widely regarded as being at a “world class” level. Including the premium to be received in relation to this transaction, LGRI has annuity assets estimated at £63bn.