The latest trustee survey from Professional Pensions offers insight on surplus challenges, market volatility and the race to buyout.
High inflation and rate reductions have exacerbated investment risk for DB pension schemes in 2024 with a survey of more than 100 trustees revealing it to be the biggest risk for schemes, followed by regulatory and cyber risk.
Professional Pensions latest research report, Preparing for the race to buyout, revealed a number of findings including the fact that a large majority of schemes are fully funded and relying less on sponsor contributions.
Yet while rising interest rates in 2023 have benefitted some schemes, others struggled. The Pension Insurance Corporation's (PIC) Mitul Magudia stresses the importance of schemes capitalizing on their current position to avoid future deficits. This could be done through locking in gains through buyouts, hedging, or using interest rate and inflation swaps for example.
To read the full report, and learn more about the issues challenging pension schemes in 2024, click below
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