“In 2021, we saw the average buyout rate hover around 102%, while the competitive buyout cost of retirees has held steady at around 100%,” said Marie Leong, consulting actuary with Milliman and co-author of the study. “It’s too early to say where rates will end later this year, but retirement risk transactions are on the rise and on track for another record year.”
The MPBI uses the FTSE curve above the AA median, along with the composite annuity purchase interest rates of eight insurers, to estimate the average and competitive costs of a PRT annuity risk reduction strategy. Individual plan annuity buybacks may vary depending on plan size, complexity and competitive landscape.
To consult the complete Milliman retirement buyback index, go to https://www.milliman.com/mpbi.
Milliman is one of the world’s largest providers of actuarial and related products and services. The firm has consulting practices in the areas of health, property and casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the world. For more information, visit milliman.com.
SOURCE Milliman, Inc.