The Pension Protection Fund, the UK's lifeboat for collapsed pension schemes, plans to change its valuation method to one which appears to reduce the liabilities of retirement schemes, a move which may make buyouts a more attractive alternative insurance policy.

Prices in the pension buyout market have fallen over the past two years as more providers enter the market. The PPF, which last changed its valuation assumptions in September 2006, is considering bringing its valuations into line with market prices by changing its assumptions on mortality and discount rates.