Concerns have been expressed about UK’s defined benefit (DB) pension system in the light of rising deficits. Brexit has thrown these challenges into even sharper relief – but there is much we can do to help companies manage the real costs of these schemes, including:
- Flexibility in funding plans within an effective regulatory system
- Modernising inflation indexation
- Addressing the negative spiral created by a “glits plus” approach to valuing schemes
- Unlocking pension scheme investment in more illiquid assets – including infrastructure.