Capabilities & Solutions

Defined Benefit

Having long been the dominant mode of pension provision and that which remains by far the biggest in terms of scheme assets under management, defined benefit (DB) must confront a myriad of challenges if it is to deliver on the pensions promise. Against the backdrop of a challenging economic environment for both scheme sponsors and trustees, trustees must also contend with the effects on both sides of the balance sheet of historically low interest rates, improving longevity, an ever increasing regulatory and legal duties burden, greater complexity around investment choices and, for many, navigating the challenges of being cash flow negative as schemes mature and the time remaining to make good any deficit reduces – all of which requires the continual evolution of governance, technical knowhow and risk management. The latter, in particular, must increasingly integrate ESG risk factors and that most systemic of global risks, climate change, into trustee decision making, as well as risk transfer and end game planning given the increasing maturity of DB schemes.

Working closely with other client teams including that serving insurers, our DB thought leadership and solutions capability is focused on helping trustees better understand and navigate the key risks they face and those other key determinants of successful DB retirement outcomes, breaking down the jargon in the process.

Further reading:

19 April 2021

Chris Wagstaff

Head of Pensions Investment & Education

Pensions watch – Issue 7: What’s been happening and what’s on the horizon in the world of pensions

In this edition we focus on why, how and to what extent climate change risk management has been dialled up by recent legislation, regulation and global collaborations and why this matters.
Read time - 5 min
8 April 2021

Chris Wagstaff

Head of Pensions Investment & Education

Revolution on the horizon: Will the Dutch pension system still set the bar for sustainability, adequacy and integrity?

With the adequacy, sustainability and even integrity of the world’s pension systems being tested to the limit, the Netherlands has achieved more than most in meeting the demographic, economic and financial challenges that have compromised many other pension systems over the past couple of decades.
Read time - 10 min
19 February 2021

Chris Wagstaff

Head of Pensions Investment & Education

Pensions watch – Issue 6: What’s been happening and what’s on the horizon in the world of pensions

In this edition we focus on why, how and to what extent to increase contributions to defined contribution schemes if good retirement outcomes in the UK are to become the norm.
Read time - 5 min

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