If you want your defined benefit pension plan to continue to meet your liabilities, you’re wise to include risk in your portfolio. Risk comes in many forms. It’s an inherent part of any portfolio. New and emerging frameworks are forcing people to rethink how much they’ll take on and how they deal with risk in their DB plans.
You need to ask yourself not how much pension liability risk you’ve taken on, but how well you’re managing the risks associated with your DB plan. Any plan review should include a risk assessment—and a plan to optimize and boost the plan’s performance.
Low interest rates, market volatility, and even how long your plan members are living affect your DB plan portfolio. The good news is you have a number of tools for managing such risks, including liability driven investment strategies, such as interest rate swaps, and pension risk transfers, such as annuity purchases.
Today’s DB plans need to accept more risk in order to realize higher returns. You have more incentive than ever to accept risk—and more options to handle them effectively.
Simply by undertaking steps to optimize your plan risks, you can:
As pension plans continue to evolve, so too do strategies for managing them. You can optimize your DB plan to help you weather any storm. Rocky markets and low interest rates need not bother you!
This whitepaper explains what you can do to get your plan on the path to providing greater rewards.
You’ll discover the simple steps forward to a better DB plan future:
Ready to get started on your path to your DB destination? Download the report.
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