Increasing numbers of pension schemes want to de-risk. However, our surveys have shown that many schemes are struggling with deciding what actions to take in what order to make the de-risking happen. So we have written Pension scheme de-risking – a practical guide as an A to Z on how to implement successful de-risking plans.
In the guide, we look at the fundamental aspects of choosing a realistic de-risking target, a plan to reach the target and what it will feel like (in terms of investment strategy and risk profile) when that target is reached.
There will be opportunities and threats during the lifespan of the plan. The test of a good plan is not how it deals with the expected but how it adapts to the unexpected. The guide addresses how to evaluate experiences and adjust the plan accordingly along the way.
However, even the best thought-out plan is useless if it cannot be implemented successfully. That means that the opportunities and threats need to be identified and then decisions made and acted upon efficiently. The final part of the guide covers the operational aspects of implementing a de-risking program with sections on the implications for scheme readiness, how trustee boards and sponsors might need to adjust their working practices and ensuring that advisers are aligned with the plan.
The aim in the guide is to be practical, so throughout there are key questions to ask yourself as well as space for notes on your own situation.
"Well done on the production of this very practical guide. In an ever-changing environment, and not always for the better, its no-nonsense and hands-on approach will play a increasing role in enabling pension schemes to develop their own specific operational model with the minimum of complexity."
"After 40 years' involvement in the trusteeship and governance of over 400 pension schemes it is encouraging and refreshing to see such a user-friendly model."
-Brian Holden MBE, trustee life coach and well-known industry figure
To find out more about Aon Hewitt's de-risking solutions please call us on 0800 279 5588 or email email@example.com
Last updated 19 March 2013