Companies face multiple challenges in regard to their pension plans. Regulators continue to set exacting parameters, while low interest rates continue to present funding challenges. Within defined contribution (DC) pension plans, individuals are often under-saved and face difficult decisions on what to do with their savings once they get to retirement.
The biggest challenge is to plug a funding gap in a low-return environment within the risk constraints of the scheme. For this companies need creative investment solutions, from managers who understand their unique needs to and through retirement.
Active investment management has the potential to help deliver the growth that schemes require, while managing risk appropriately. We recognize that the additional governance burden that comes with monitoring active managers against their objectives can be challenging for pension plans, but this can be appropriately managed by the right investment partner. At the same time, active investing can be a valuable tool in more effective and nuanced management of risks, particularly in the crucial phases as individuals approach and enter retirement.
We work collaboratively with pension plan sponsors to think about the big questions: how to deliver reliable, consistent income options; how to close a personal funding gap or protect against excessive investment risk; how to generate greater certainty for members around the type of retirement they can expect. We take time to understand their needs, building intelligent solutions that draw on our global expertise.
Many of our clients, both large and small, have been with us for decades. We have helped them through each evolution of their schemes, from inception to maturity. We understand each stage in the pension fund lifecycle, and the associated responsibilities.
Schroders has a broad perspective, helping pension schemes across the globe. This enables us to share best practice from different countries, introducing new ideas and solutions where appropriate, and to collaborate across borders. We produce thought-provoking and academically-acclaimed thought leadership and combine this with our in-depth solutions expertise to provide products that are tailored to meet the needs of our clients. The Schroders platform helps bring together our best ideas from every market to deliver the right solutions for every scheme.
Our funds span the full retirement journey – from those aiming to provide returns above inflation during the earning and saving phase, to those intending to provide an income for life in the later stages of retirement. There is an option to suit a multitude of requirements.
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The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
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