DB pension schemes are rapidly maturing.
As liabilities are transferred out, the time schemes have to reach their long-term targets is reduced. As a result, decisions around investment strategy and approaches to hedging longevity risk have come more sharply into focus.
Improved funding positions, in tandem with strong equity market performance, have led to an increase in de-risking initiatives, with schemes looking to reduce equity market risk and increase hedging levels.
Some schemes are looking for a better understanding of their future cashflow needs and to identify asset classes — including less liquid structures — that could help meet those requirements.
The investment findings from our 2019 Global Pension Risk Survey look at how schemes are tackling all these issues. The Investment Chapter and an extended version, looking in more depth at the issues covered, are free to download.
You can read all the findings from our Global Pension Risk Survey – which explore schemes’ approaches to risk in a number of countries – here.
If you would like to know more about any of the issues covered in the Investment findings, please don’t hesitate to contact us.
Aon Hewitt Limited is authorised and regulated by the Financial Conduct Authority.