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    Why would you not want to access your share of £225bn available capital? The corporate perspective on DB pensions

    Why would you not want to access your share of £225bn available capital? The corporate perspective on DB pensions

    April 19, 2024 Solutions
    Excess capital in DB schemes allows for investment risk within affordable boundaries. Plus, many sponsors now have the scope to access an upfront cash distribution from this excess capital in addition to a long-term predictable income stream. Meanwhile, the cost of an insurance buyout may reduce through time. Why forgo your share of this opportunity?

    The current healthy state of DB pension schemes means perspectives on risk-taking need adjusting. Excess capital in DB schemes allows for investment risk within affordable boundaries. In this paper we set out why corporate sponsors should play a key role in changing perceptions for their pension schemes.

    Figure 1: UK DB schemes are in excellent health1

    15970-UK_DB_schemes_chart1_840x480px.jpg

    Source: The Purple Book 2023, Pension Protection Fund (PPF)
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