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

News Digest: The UK's pension shake-up is facing pushback

News Digest: The UK's pension shake-up is facing pushback

PP brings together all the latest news on pensions from across the national and financial media

Professional Pensions
clock 25 June 2025 • 1 min read
Renting in retirement halves chances of reaching minimum living standard

Renting in retirement halves chances of reaching minimum living standard

Having to pay housing costs in retirement reduces chances of minimum RLS to 43%

Martin Richmond
clock 24 June 2025 • 3 min read
Buzz: Is there a link between the size of a pension fund and its performance?

Buzz: Is there a link between the size of a pension fund and its performance?

Pension fund scale and performance, superfund providers and transfer times

Professional Pensions
clock 23 June 2025 • 1 min read
Trustpilot