Strategy through Covid: all roads lead back to the beginning?
09 Apr 2021
Imagine you looked at your scheme’s funding in late 2019. And then you fell asleep. For a year. (Warning: review of funding more frequently than once a day has been known to induce side effects, like deep sleep.)
Then imagine you wake up this morning, not from the kiss of a prince or princess but from a text message from your funding tracker (almost as good?): you’re funding hasn’t changed. But wait, what – it’s 2021?
Well, ending up where you started out might be fine if you started in a good place. And if you survive the ride. But the C word is a reminder that survival of the sponsor is not a given. Improving member outcomes is all about the journey of the scheme and the sponsor.
With most pension schemes emerging from 2020 relatively unscathed in funding level terms, now is a critical time to wipe sweat off brows, and to forge a path to better member outcomes. So, for a 2 minute refresh of what happened whilst you’ve been sleeping(!)…. and some top tips for a journey that improves member outcomes, check this out!
Post-pandemic plans
Here’s three top tips…
- The end game is nigh. With the current calm and recovery, is your end game closer than you think? Now may be a good time to revisit your journey plan.
- Batten down the hatches. Could you take advantage of rising gilt yields and improved funding positions? To de-risk and ‘lock-in’ recent gains.
- Fix the roof while the sun is out. With so much uncertainty surrounding markets, covenants and mortality rates - contingency planning will be key. As the dust settles, scenario testing across a broad range of risks will add value.
And in the meantime, here’s to a glorious summer.
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