Cashflow shortages - the implications

clock

As schemes mature, it's more likely that they will become forced sellers of assets irrespective of how well funded they may be. Understand and plan your cashflow requirements or you might get bitten!

It has been reported recently that half of local authority schemes risk having a cashflow shortfall. However, this is an issue for consideration by most private sector pension schemes as well. As schemes mature, the higher monthly benefit payments and reduced contribution income from those accruing benefits inevitably makes it more likely that schemes will become forced sellers of assets irrespective of how well funded they may be.

This is a significant point. Imagine the scenario where a scheme is fully funded on a scheme funding basis but finds itself cashflow negative and expects to remain so for some time.  There are two options…

To read the rest of the blog click here:
http://www.woollysblog.com/cashflow-shortages---the-implications.aspx?utm_source=ppe&utm_medium=extcommvp&utm_campaign=blog

More on Industry

Pensions Commission – Political consensus crucial for enduring reform

Pensions Commission – Political consensus crucial for enduring reform

Commission’s interim report expected to be published in Spring 2026

Martin Richmond
clock 07 May 2026 • 2 min read
Rising Star Awards 2026: One week left to nominate!

Rising Star Awards 2026: One week left to nominate!

Recognising and celebrating the pension industry’s rising stars

Professional Pensions
clock 07 May 2026 • 2 min read
Broadstone launches service for DB schemes with legacy insured contracts

Broadstone launches service for DB schemes with legacy insured contracts

Offering will support ‘neglected’ trustees and sponsors with complex and high-cost schemes

Jonathan Stapleton
clock 07 May 2026 • 2 min read
Trustpilot