Welcome to our report on the UK findings of Aon’s 2019 Global Pension Risk Survey into defined benefit (DB) pension schemes. We carry out the Global Pension Risk Survey every two years; looking back over the last decade we can see how the pensions landscape has developed.
Ten years ago, schemes were dealing with the fallout from the global financial crisis — we used the analogy of a donkey chasing a carrot tied on a stick to its head in the 2013 survey report to symbolise that schemes’ long-term targets forever seemed just out of reach. However, in recent years, schemes’ long-term targets have grown closer than they have ever been, as schemes mature. It seems the donkey is set to catch the carrot!
Maturity is a key theme of this survey, as it is of many of The Pensions Regulator (TPR)’s recent statements, including the 2019 Annual Funding Statement. As many schemes see significant amounts of liabilities transferring out, they are maturing rapidly, and some decisions around long-term targets and approaches to hedging longevity risk are coming more sharply into focus. Even open and less mature schemes will be affected by these changes as well as by the pressure from TPR to have a longterm target. There are also new issues for schemes to confront in 2019, including cyber risk and (finally) dealing with GMP equalisation after 2018’s Lloyds Bank court case ruling.
Download the full report above to learn more.
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