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:

29 June 2021

Chris Wagstaff

Head of Pensions Investment & Education

Pensions watch – Issue 10: What’s been happening and what’s on the horizon in the world of pensions

With trustee investment governance, in many cases, being tested to the limit, not least in the early stages of the pandemic, in this edition we focus on generating better pension outcomes through improved investment governance and innovative investment thinking.
Read time - 5 min
2 June 2021

Chris Wagstaff

Head of Pensions Investment & Education

Pensions watch – Issue 9: What’s been happening and what’s on the horizon in the world of pensions

In this edition we focus on the increasingly discussed spectre of inflation resurfacing and bond yields rising, as economic growth gathers momentum and supply shortages see many commodities and manufacturing components post dramatic double-digit price rises. Ultimately, we consider the implications for pension scheme funding.
Read time - 3 min
13 May 2021

Chris Wagstaff

Head of Pensions Investment & Education

Pensions watch – Issue 8: What’s been happening and what’s on the horizon in the world of pensions

In this edition we focus on the latest, and one of the most illuminating, industry reports to warn of the imminent deterioration of retirement outcomes, principally as a consequence of wholly inadequate Defined Contribution (DC) saving.
Read time - 3 min

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