For many defined benefit (DB) pension schemes, longevity risk remains one of the largest unmanaged risks on the balance sheet. While longevity swaps have become an established risk management tool for the UK's largest pension schemes, access has often been limited for smaller and medium-sized schemes due to cost, complexity and operational requirements.
Longevity Stream is WTW's new streamlined longevity swap solution, designed to make longevity hedging more accessible, efficient and cost-effective for pension schemes with £100 million to £1 billion of liabilities.
Built on a structured, repeatable framework, Longevity Stream gives trustees access to leading reinsurers, simplified implementation and a clear path towards future endgame objectives.
The challenge: Managing longevity risk without the complexity
Recent mortality trends have brought renewed attention to longevity risk. The latest CMI mortality improvement projections[1], together with record low death rates observed in the first half of 2026[2], have highlighted the potential for members to live longer than anticipated, increasing the importance of understanding and managing longevity exposure.
Against this backdrop, more schemes are evaluating longevity risk management as part of their wider funding and endgame strategy, whether that involves running on or preparing for future insurance transactions.
However, traditional longevity swaps have often been difficult for many schemes to access because of:
- Limited appetite from reinsurers for smaller transactions
- High implementation costs
- Complex legal and operational structures
- Lengthy execution processes
- Significant governance requirements
These factors have historically made longevity swaps a practical option only for the largest pension schemes.
The solution: Longevity Stream
Longevity Stream has been developed to remove the barriers that have prevented many schemes from considering longevity swaps.
The solution creates a structured route to market, combining:
- WTW's market-leading longevity swap expertise
- A panel of global reinsurers
- Zurich Assurance Ltd, as a UK regulated experienced intermediary
- CMS as legal adviser, with pre-negotiated contractual documentation and extensive transaction experience
Together, these parties provide a streamlined framework that reduces complexity while maintaining the flexibility schemes need for future strategic decisions.
What are the key benefits of Longevity Stream?
Note: Based on WTW experience to date of end-to-end longevity swap adviser costs.
Who is Longevity Stream designed for?
Longevity Stream is particularly suited to:
- Defined benefit pension schemes with £100 million to £1 billion of liabilities
- Trustees seeking to hedge longevity risk without the complexity of a bespoke transaction
- Schemes considering a run-on strategy
- Schemes targeting a future buy-in or buyout
- Trustees and sponsors looking to improve certainty around future funding outcomes
Note: Longevity Stream may not be suitable for all schemes. Suitability will depend on scheme circumstances, objectives and requirements.
Why WTW?
Longevity swaps are already a well-established part of the UK pension risk transfer market, with more than £170 billion of longevity risk transferred to reinsurers through these arrangements. WTW has acted as lead adviser on over £100 billion of these transactions.
This experience sits at the heart of Longevity Stream, helping schemes access proven longevity risk management capabilities through a simpler and more efficient framework.
Note: Longevity swap market volume statistics are based on publicly available information and deals led by WTW. The data is accurate as at 30 June 2026. Unless otherwise indicated, lead adviser means WTW provided the regulated advice.
Get in touch
If you would like to explore how Longevity Stream could support your scheme's risk management or endgame planning, please get in touch with our Pension Risk Transfer specialists.
FP 13739017
Footnotes
- "CMI Model shows further rise in cohort life expectancy," Institute of Faculty of Actuaries, 10 March 2026. Return to article
- "CMI newsletter – June 2026," Institute of Faculty of Actuaries, June 2026. Return to article
Contacts
“Longevity Stream removes the barriers to this market for smaller and medium-sized schemes, giving them a more efficient route to market whilst retaining future flexibility and enabling them to access the attractive pricing currently available.”Rhys MellensSenior Director, Pension Risk Transfer
