Macroeconomic Conditions Continue to Drive Pension Risk Transfer

MetLife’s 2025 Pension Risk Transfer Poll reveals 94% of plan sponsors with de-risking goals plan to fully divest pension liabilities – most within five years

NEW YORK--(BUSINESS WIRE)--Amid ongoing market conditions and economic uncertainty, U.S. plan sponsors are moving decisively to reduce pension risk. According to the newly released MetLife’s 2025 Pension Risk Transfer (PRT) Poll, a record 94% of defined benefit (DB) pension plan sponsors with de-risking goals intend to fully divest their pension liabilities with 80% planning to do so within five years.

The company’s latest research shows market volatility is driving plan sponsors to de-risk, which, coupled with economic trends and stronger plan funding, is contributing to a positive future outlook for the U.S. pension risk transfer market.

Macroeconomic uncertainty is having a clear effect: 94% of plan sponsors report their pension plans are receiving significant attention from corporate management due to the financial impact of volatility on their balance sheets. Plan sponsors say market volatility is the top catalyst for PRT (45%), followed by interest rate changes (41%).

“We’re seeing a new era of strategic pension stewardship,” said Elizabeth Walsh, vice president and head of U.S. Pensions at MetLife. “Plan sponsors are taking action— leveraging flexible deal structures and favorable market conditions to deliver long-term security for their participants.”

MetLife’s inaugural research in 2015 highlighted pension risk transfer as a niche solution, largely reserved for the largest plans and a handful of insurers, with annual transaction volumes under $14 billion¹, according to LIMRA. Today, the market has grown dramatically with nearly $52 billion in 2024² and PRT volumes are projected to reach $100 billion by 2030³. Split deals and reinsurance strategies are expanding capacity and diversifying risk. And, with over 20 active insurers—twice as many as a decade ago—competition is driving better pricing and more flexible deal structures.

"Today, plan sponsors are more knowledgeable and strategic about pension risk transfer solutions, a notable shift from 2015," said Walsh. "A decade ago, organizations were more cautious, mainly exploring financial impacts and available options."

Over the past 10 years, plan sponsors have shifted from exploring risk transfer options to taking concrete steps toward readiness. Data cleansing has emerged as the top preparatory action, with 62% prioritizing the improvement of plan participant data quality—a critical foundation for efficient and accurate transactions. Nearly half, 48%, have increased plan contributions.

The Poll also reveals a dramatic shift in preferred risk transfer solutions. In 2015, only 46% of respondents said they will use an annuity buyout on its own or in combination with a lump sum to achieve their PRT goals; today, that figure has soared to 78%. The average size of the liabilities surveyed sponsors plan to transfer is $608 million.

About the Study

MetLife’s 2025 Pension Risk Transfer Poll was fielded between August 8 and August 27, 2025. MetLife commissioned MMR Research Associates, Inc. to conduct the online survey. Survey responses were received from 231 DB plan sponsors with $100 million or more in plan assets who have de-risking goals (either near- or long-term) involving pension risk transfer for their pension plan(s). The Poll results reflect companies with average DB plan assets of $938 million, and an average funded status of 93%. To read the full report, visit www.metlife.com/2025prtpoll.

About MetLife

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit www.metlife.com.

¹ LIMRA

² LIMRA

³ “PRT: High-Growth Opportunity in a Slow-Growth Sector. . . but With Potential Risks,” JP Morgan Insurance, June 27, 2025.