Aon Hewitt has launched an online Settlement Readiness Assessment, open to all UK defined benefit pension schemes.
The test is designed to provide an overview of a scheme’s readiness to move to a bulk annuity, with the results analysed to show how close a scheme could be to taking up a de-risking solution.
The firm’s partner, Paul McGlone, believes that many schemes will need to make use of a bulk annuity at some stage in their future, whether in five, 10 or 20 years’ time.
However, he warns: “Experience has shown that not all schemes are ready to take the opportunities when they arise – as illustrated in 2007/2008 when many missed the chance to make the most of attractive pricing.”
The Assessment consists of 20 multiple choice questions on factors which will be particular to individual schemes.
Based on the answers, Aon Hewitt will provide schemes with an indication of how well prepared they are to transact, should the circumstances be right.
Schemes will also be benchmarked against others that complete the survey.
Category: Companies News, Insurance News
