Unprecedented and persistently high levels of volatility in financial markets have added to the already considerable challenges faced by pension fiduciaries. The direct impact of this volatility on funds is clear. It’s harder than ever to forecast future asset, liability and funding levels. Few funds can be certain that their assets will ultimately meet their liabilities. And it is not difficult to imagine that this situation could get worse before it gets better. Challenging economic conditions are compounding the problem, with sponsors under more pressure than ever before.
By matching a portion of their liabilities and hedging against adverse changes in interest rates, inflation and longevity, funds and their sponsors can help to ensure that they can pay benefits even under the most adverse conditions.
Why Willis Towers Watson?
At Willis Towers Watson, we are aware that this is a complex and costly area, and we can structure our approach to fit each individual client’s circumstances.
Willis Towers Watson is a leader in liability hedging solutions, advising on a significant number of transactions, including interest rate and inflation swaps, buy-in and buy-outs, “swaption” strategies and longevity swaps.
As the race to de-risk accelerates and competition increases, we can provide a service that guides you as you execute your own solutions, or provides more proactive dynamic support.