Pensions - Articles - Understanding your DB Pensions Destination

 Elaine Torry, co-head of DB Investment and author of the ‘Understanding your DB Destination’ paper explains this shift in trustee behaviours: “It’s not surprising that 70% of Trustees have taken TPR’s focus on setting appropriate Long Term Objectives as an opportunity to review their own plans*. We’ve seen a rise in popularity of trustees aiming for full buy-out while fewer appear to be targeting self-sufficiency. However, with 95% of trustees still working towards traditional goals it’s clear that more education and awareness is needed around the alternative opportunities now available.

 Trustees may not be fully considering some of the alternative self-sufficiency approaches or the newer end-game options such as exploring entering into a consolidator vehicle. By including some of these less traditional options into the review process, Trustees can have greater confidence in finding a Long Term Objective that best suits their needs and supports them to reach the best outcome for members.”

 * Hymans Robertson’s Trustee Barometer research 2019 – 70% of Trustees have reviewed their LTO in the past 12 months.
 ** Read the full ‘Understanding your DB Destination’ paper