Cashflow shortages - the implications

clock

As schemes mature, it's more likely that they will become forced sellers of assets irrespective of how well funded they may be. Understand and plan your cashflow requirements or you might get bitten!

It has been reported recently that half of local authority schemes risk having a cashflow shortfall. However, this is an issue for consideration by most private sector pension schemes as well. As schemes mature, the higher monthly benefit payments and reduced contribution income from those accruing benefits inevitably makes it more likely that schemes will become forced sellers of assets irrespective of how well funded they may be.

This is a significant point. Imagine the scenario where a scheme is fully funded on a scheme funding basis but finds itself cashflow negative and expects to remain so for some time.  There are two options…

To read the rest of the blog click here:
http://www.woollysblog.com/cashflow-shortages---the-implications.aspx?utm_source=ppe&utm_medium=extcommvp&utm_campaign=blog

More on Industry

Pensions UK calls for Pension Schemes Bill mandation power to be withdrawn

Pensions UK calls for Pension Schemes Bill mandation power to be withdrawn

Call comes as Bill is at a ‘crucial juncture’ in its passage through Parliament

Jonathan Stapleton
clock 03 March 2026 • 2 min read
Maps seeks testers for MoneyHelper Pensions Dashboard

Maps seeks testers for MoneyHelper Pensions Dashboard

Body looking for savers aged 18 or over who have not begun withdrawing their pension

Martin Richmond
clock 03 March 2026 • 1 min read
Industry sets hopes on 'boring' Spring Statement

Industry sets hopes on 'boring' Spring Statement

Uneventful sequence of fiscal events this year will be welcomed by those in the industry

Jonathan Stapleton
clock 03 March 2026 • 2 min read
Trustpilot