Reshaping pension scheme investments: a strategic opportunity for employers
Reshaping pension scheme investments: a strategic opportunity for employers
27 Feb 2025
New pensions regulations require all schemes to have a long-term funding and investment strategy. This is an ideal opportunity for employers to reset their schemes’ current and future investment strategies and align them with corporate objectives.
At a glance
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The new pensions regulations require employers and trustees to agree a long-term funding and investment strategy.
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This includes agreeing a notional long-term investment strategy, which is the first time employers have needed to agree any part of the investment strategy.
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This offers an ideal opportunity for employers to redefine their schemes’ investment strategy to ensure outcomes are aligned with corporate objectives.
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Along with the long-term investment strategy, employers and trustees also need to agree the level of risk in their overall journey plan, which will itself influence the investment strategy over the journey.
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The chosen strategy will directly impact the level and likelihood of future employer contributions, as well as how much surplus could potentially be generated, so it is important for employers to decide which strategy within the regulatory framework best suits their needs.
This edition of XPS Express is the fifth in a series on setting long-term strategies – read parts one, two, three and four here.