UK - Corporate employers are keen to de-risk their defined benefit plan pension arrangements through a buy-in or buyout But research suggests the big worry for many is whether they have the assets to finance it, so they may turn to do-it-yourself methods.

Clear Path Analysis has conducted of survey of 30 director or senior representatives of buyout solutions and found a third (33%) believe lack of capital to fund buy-ins or buyouts could stand in the way of the markets continued growth so they predict a growth in buy-in and buyouts over the next two years.

Findings of the survey were delivered ahead of a report on this subject.

Interestingly, at least a quarter of respondents believe the costs of transacting in such deals will rise, perhaps in part because 27% of respondents feel there is low capacity in the market for continued growth and 24% believe more education is needed around transaction pricing.

It's not all down to pricing concerns, however, as the poll found almost three in 10 (29%) still need more education to help their fundamental understanding of what a buy-in and buyout is while 18% want guidance on the alternatives to pension buyouts.

The CPA also predicts demand will in the immediate future come from small to medium-sized pension schemes with less than £500m (€560m) in assets, providing companies have the cashflow to reinsure member benefits.

A report based on the findings of this survey will be published by CPA next month.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com