Pension de-risking

Improvements in life expectancy, volatile markets and unpredictable deficits have focused the minds of trustees and employers on managing risk.

Each of these factors has contributed towards the growing trend for pension schemes to explore how they can best manage or transfer risk through de-risking.

A number of alternatives exist for those seeking to reduce the risk in their schemes, including LDI strategies, as well as tools that help to reduce longevity risk such as longevity swaps, buy-ins and synthetic buy-ins. Some schemes even choose to take the ultimate step of transferring all liabilities to an insurance company through a buy-out.

Whatever route is chosen, de-risking has many potential benefits for both trustees and businesses. Reducing the economic risks posed by DB schemes can help maintain the health of the company’s balance sheet, while at the same time putting the pension scheme on a sustainable and firm footing to safeguard future incomes.

Sackers’ team of expert lawyers has been at the heart of providing straightforward and pragmatic advice to clients on all the key de-risking solutions for many years. Our de-risking guide provides an introduction to our services using real-life examples from across the de-risking spectrum.