Innovative ways of dealing with pension deficits and pensions risk

Pensions risk management remains a priority for companies with defined benefit pension schemes, and recent market volatility has focused attention even more on this subject. But in terms of managing pension risk, you can make volatile markets work to your advantage, allowing you to strike deals at competitive prices just when the time is right.

There are also risks you can deal with which do not depend so much on stockmarkets. For example, one of the main risks faced by employers with defined benefit pension schemes is people living longer. It is possible to isolate and transfer this risk to a third party, potentially on very attractive terms compared to your current expectations of future longevity trends. ITV recently became the first FTSE100 company to hedge their pensioner longevity risk on a stand-alone basis.

You can find out more by watching this short video of Raj Mody and Steven Dicker discussing the options available to employers and trustees and the steps they can take to capitalise on recent market developments and innovations.