At present, there is general agreement about the importance of managing retirement fund assets taking into account liabilities in order to limit, as far as possible, potential financial losses of any significance, not only for promoters but also for participants.
As far as defined benefit plans are concerned, your consultants have the know-how required to guide you in your choice of means. Perhaps you need to consider a change to your investment policy in order to reduce risk; or consider a liabilities-guided approach to investment; or perhaps it is time to update your funding policy.
Risk management is not only for defined benefit plans; it is every bit as useful for capital accumulation plans. Such plans present risks in terms of participant behaviour, short-term volatility, insufficiency of retirement income and longevity. Our experts can assist you in establishing strategies tailored to your situation, such as adjustments to investment options or measures to reduce the risk of longevity.