Our DB predictions for 2019
18 Dec 2018 - Estimated reading time: 3 minutes
With 2019 set to be another busy year in Defined Benefit pensions, we predict there are five key themes likely to dominate over the next 12 months:
- Regulatory change - trustees and sponsors will really start to feel the Regulator’s bite in 2019.
- Take-off in the DB consolidation market – with the government and regulator voicing support for consolidation, trustees should keep an open mind and objectively choose the best option for their members.
- Maximising value from lower risk strategies - as schemes continue to reduce investment risk, 2019 will see trustees searching for assets which can create more value.
- Holistic end game planning – a trend set to continue for 2019; trustees should start to take action at least 5 years before reaching the finish line.
- Implications for Brexit – trustees will need to stay alert as the implications unfold, considering the impact on areas such as employer covenant and the capital markets.