Management Consulting
Aon
Full Credential Description
Aon's 'Risk Settlement Survey 2021 - Journey to Settlement' revealed that UK pension schemes are increasingly focused on achieving their endgame, with 34% targeting buyout as their ultimate goal. The survey, which included responses from trustees and sponsors of schemes ranging from £50 million to over £1 billion, indicated that 77% of these schemes are now over 80% funded towards their endgame target. However, only 26% expect to reach their endgame in less than five years, suggesting a potential overestimation of the time required to achieve these goals. Michael Walker, an associate partner in Aon's Risk Settlement Group, emphasized the importance of a proactive approach for trustees and sponsors. He noted that while many schemes are better positioned than they anticipated, they must prepare strategically to capitalize on opportunities as they arise. The survey also highlighted that around 75% of schemes are likely to offer support for members' retirement decision-making, and 32% are assessing their investment performance relative to low-risk measures or buyout costs. Furthermore, 54% of schemes are considering data cleansing activities to enhance their planning processes. The findings suggest that phased buy-ins are increasingly being utilized as a risk management tool, with many schemes actively evaluating how these transactions impact their investment strategies. The support for 'at retirement' initiatives is also on the rise, providing greater flexibility to members while simultaneously reducing risk. A clear strategic plan is essential for trustees and sponsors to ensure a smoother and more cost-effective journey towards their endgame objectives.