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

Calls grow for pensions minister to create long-term savings commission

Calls grow for pensions minister to create long-term savings commission

Nucleus writes to pensions minister calling for ‘political consensus’ on savings

Jasmine Urquhart
clock 10 March 2025 • 2 min read
News Digest: UK pension funds stand by defence exclusion in 'ethical' funds

News Digest: UK pension funds stand by defence exclusion in 'ethical' funds

PP brings together all the latest news on pensions from across the national and financial media

Professional Pensions
clock 10 March 2025 • 1 min read
IWD 2025: Women in the pensions industry

IWD 2025: Women in the pensions industry

PP talks to women about their pensions careers, advice, and experience of the industry

Jasmine Urquhart
clock 07 March 2025 • 9 min read
Trustpilot