Legal & General Retirement
Legal & General Retirement (LGR) has two distinct businesses who manage retirement assets.
- Legal & General Retirement Institutional
- Legal & General Retirement Retail
We help individuals at the point of retirement and afterwards and assist companies that need to ensure that their employees’ pensions are paid in full and on time.
Together we help over 1 million people achieve financial security in retirement.
Ageing populations mean that companies with defined benefit (DB) pension schemes can often suffer from the financial obligations placed on their balance sheet to meet future pension liabilities. As the number of employees in DB schemes decline the effect of insufficient contributions has been made worse by a historic increase in longevity, low interest rates and volatile equity markets. Our businesses can offer DB schemes de-risking solutions at every stage of their scheme’s life cycle.
Markets and business segments
Legal & General Retirement Institutional
- Our UK Pension Risk Transfer business offers bulk annuities and longevity insurance.
There are two types of bulk annuities: buyouts and buy-ins.
- In a buyout, we take over responsibility for meeting all of a scheme's obligations. The trustees can then wind up the scheme and the company can remove the liability from its balance sheet.
- A buy-in is often the first step that a scheme will take in transferring full risk to us. In a buy-in, a pension scheme receives insurance over a specified proportion of its liabilities.
- Longevity insurance. Once a scheme has managed interest rate, inflation and investment risk, longevity risk is often its most pronounced risk exposure. Through longevity insurance, pension schemes protect against the risk that their members live longer than projected.
According to Mercer, UK FTSE 350 companies had £720 billion in defined benefit liabilities which could potentially lead to pension risk transfer deals
We are primarily UK focused, but have recently developed a growing US Pensions Risk Transfer business. We’ve also started to develop a European business, with our first Pensions Risk Transfer transaction(s) in the Netherlands.
- US Pension Risk Transfer (bulk annuities and longevity insurance)
In the US there are $1.6 trillion in defined benefit liabilities in 400 of the largest Fortune 1000 DB schemes
- Global Reinsurance
- Back book acquisition
Legal & General Retirement Retail
For employees who are retiring or have recently retired, we offer a range of products to manage retirement income, including traditional annuities. Our ‘Home Finance business helps people use the equity in their homes to increase their financial resources in retirement'.
- Individual Retirement – (annuities and other flexible retirement products)
In the UK the ageing population means that around 1 million people reach age 65 every year.
- Individual Retirement – (lifetime mortgages)
In the UK, the over 55s have £1.5 trillion in housing equity
Guide to de-risking products