Mercer warns of de-risk danger zones

Mercer suggests pension sponsors may have to retain a degree of risk for future investment returns

The growing need to de-risk group pension schemes is throwing up some potential danger zones, warns advisory firm Mercer. The combination of ongoing volatility in investment markets and scheme buyouts becoming increasingly commonplace has created four main areas about which scheme sponsors and trustees should be concerned, it said. The pension risk management specialist points to overpriced risk reduction, over-exposure to future risks, missing opportunities in the market and failing to vet providers appropriately. With a growing list of risk transfer options, including bulk annuities...