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 plan or scheme. For this they 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 recognise 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 plans 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 meet the needs of our clients. The Schroders platform helps bring together the 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.
Past performance is not a guide to future performance and may not be repeated.
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.
Important information: The views and opinions contained herein are those of the authors, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This webpage is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the webpage when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. 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. The data contained in this webpage has been obtained from sources we consider to be reliable. No responsibility can be accepted for errors of fact and the data should be independently verified before further publication or use. The sectors shown are for illustrative purposes only and not to be considered a recommendation to buy or sell. Exchange rate changes may cause the value of any overseas investments to rise or fall. In North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc providing asset management products and services as a US SEC registered investment adviser and in the capacity of Portfolio Manager with the securities regulatory authorities in Canada. For all other users, this content is issued by Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.