More than eight out of ten (85%) pension scheme trustees anticipate that wind up projects will be challenging even before they start, according to research from Hymans Robertson. Half (50%) of scheme trustees surveyed cited key aspects of the project, including data cleansing and project management, as being particularly difficult, the findings from the research revealed. The leading pensions and financial services consultancy warns that wind up projects are among the most costly and complex projects most schemes will ever undertake. It is vital that all options and challenges are understood and considered to ensure success of the project and avoid poor member outcomes.

To help guide schemes as they embark on their wind up journey, Hymans Robertson has launched a free interactive online wind up readiness tool, available to any trustee. The tool will help them understand their current position along the journey to wind up and to give some practical guidance on next steps, tailored to each scheme’s individual circumstances.

Commenting on the importance of understanding the likely challenges on the way to wind up, Christine Cumming, Head of Scheme Wind Ups says:

“With so many trustees anticipating that wind up will be challenging and half believing that elements of the process will difficult, it is vital that they overcome these hurdles as they face the wind up journey. If schemes do not plan ahead, they risk storing up significant problems for further down the road. Understanding the readiness of a scheme for wind up is a crucial first step to reaching the ultimate goal - there are many areas which will need to be considered including assets, data cleansing and importantly the cost of buyout. We’d encourage schemes to start considering these challenges and planning ahead as soon as they can in order to ensure their scheme is ready to begin the wind up journey, and prevent the project dragging on longer than necessary.

“Our new wind up readiness tool can be used by any scheme at any stage of the journey to help with buyout and wind up decision making. The tool helps trustees assess whether they are a long way away from, very close to being able to wind up or anywhere in between, and then suggests some practical solutions and considerations to help tackle the various challenges along the way.”

Access the free tool here.