The de-risking phenomenon is drying up long-term investment in younger generations as companies are forced to put more into defined benefit (DB) schemes, according to Ashok Gupta.
While the market volatility and falling gilt yields in the aftermath of the EU referendum is bad news for DB schemes, they could actually benefit from more attractive buy-in and buyout pricing. Kristian Brunt-Seymour explores which schemes could benefit...
Record lows in gilt yields have pushed up the liabilities of UK defined benefit (DB) schemes to an all-time high of £2.3trn following Britain's decision to leave the EU.
The belief that maturing DB schemes should automatically move into bonds and gilts is being increasingly challenged. Kristian Brunt-Seymour explores alternatives to the traditional de-risking model.
A shift in longer dated gilt yields of 0.3% triggered by a Brexit could change defined benefit (DB) liabilities by £70bn according to the Society of Pension Professionals (SPP).
The total funding level of the 5,945 schemes in the Pension Protection Fund (PPF) 7800 index rose slightly to 83% by the end of April.
Trustees relying on equities and gilt yields to improve are taking a big gamble and could result in a rush of schemes going bust, says Hugh Nolan.