With uncertainties around global economic growth and interest rates likely to remain low for longer, there is a significant risk that high pension costs and volatility of deficits will continue.
Furthermore, given the disparity between the size of UK pension liabilities, gilts in free circulation, and current annual market capacity for annuity buy-ins, it is impractical for most sponsors to finance the premiums required to transfer pension risk off of their balance sheet.
Cashflow Driven Financing (CDF) is a flexible approach to managing pension financing and corporate balance sheet volatility without the higher contributions associated with traditional investment de-risking and annuity buy-in strategies.
Find out how CDF can help trustees and sponsors manage pension obligations and transition efficiently to an appropriate risk-contained funding and investment strategy.
DB Pension Trustees, Pension Managers, CFOs, Finance Directors
Gareth Edwards, Senior Partner and Actuarial Advisor
Alan Baker, UK DB Risk Leader
Norbert Fullerton, Partner, Financial Strategy Group
Emma Pardo, Senior Associate, Mercer Investments