Defined Benefit

Effective implementation of a solutions approach

Defined Benefit pension schemes face some serious challenges: persistent negative real rates and lower asset returns

03/10/2016

Hannah Simons

Hannah Simons

Strategist - UK Strategic Solutions

If we continue to behave as we have in the last few years, the result will likely be the same for DB schemes: a highly volatile funding position which remains stubbornly in deficit.

To have a chance of overcoming these challenges, we need to adopt a far more collaborative solutions approach where all parties are focused on the goal of reducing the deficit over time. Many of these day to day implementation elements can be delegated to a specialist, giving trustees the benefit of swifter decision making and a greater focus on funding level risk management, whilst retaining ownership of the key strategic decisions.