Defined benefit pensions

At Canada Life, it’s all about you. With millions of customers worldwide – including over 3.6 million in the UK – you’re our main focus. Prefer managing your pension online? Or maybe you’d rather reach us by phone, email, or post? The choice is yours. With Canada Life, your pension is in safe hands. You can feel secure about your future and enjoy every step of your retirement.

What you need to know about your pension

To make sure your pension payments are secure and reliable, the trustees of your defined benefit pension scheme chose Canada Life to take responsibility for your pension benefits going forwards.

This process, known as a pension buyout, ensures that your benefits are protected and managed by a trusted, regulated insurance company. Your pension payments remain consistent, but with added security and peace of mind.

What is a pension buyout?

A pension buyout happens when the trustees of your defined benefit pension scheme transfer responsibility for paying pensions to an insurance company. In exchange for a single payment from the scheme, the insurance company becomes responsible for making regular pension payments to policyholders like you (instead of the defined benefit pension scheme). Once this happens, the defined benefit pension scheme is usually wound up, meaning it no longer exists.

Some people may worry that their pension has been "sold off," but that’s not what a buyout means.

In recent years, thousands of defined benefit pension schemes have needed support from the Pension Protection Fund (PPF) - a safety net designed to step in when companies can’t meet their pension commitments. While the PPF provides vital protection, members in those schemes have often faced a reduction in their pension payments.

A buyout removes this risk by transferring responsibility to a regulated insurance company that is legally required to keep substantial financial reserves - known as capital requirements - to ensure pensions are paid, even in challenging economic conditions. No UK insurance company in the pension buyout market has ever failed to meet its obligations.

By moving your pension benefits to Canada Life, the trustees of your defined benefit pension scheme have chosen one of the most reliable ways to secure your retirement income. With us, your benefits are protected, and you’ll receive long-term support from a trusted provider with a proven track record.

Your annuity policy

As part of the buyout, you'll receive an individual annuity policy from Canada Life. This policy reflects the pension benefits you built up under your original scheme which will now be paid by Canada Life for life - securely and reliably.

We refer to this as your pension because that’s exactly what it is - a pension designed to provide you with a set income based on your years of service and salary history. So, whenever you see us mention your pension, it simply means your Canada Life individual annuity policy that provides those benefits.

While the terminology has changed, what matters most hasn’t: your pension remains protected and secure, giving you confidence and control over your financial future.

Your pension is secure with Canada Life

The trustees of your defined benefit pension scheme chose Canada Life because of our experience, financial strength, and commitment to keeping pensions secure.

When your pension was transferred to us, it became protected by the financial safeguards that come with being part of a regulated insurance company. We’re legally required to hold enough funds to cover all our commitments, even during tough economic times. 

Why choose Canada Life?