News & Updates
Higher bond yields are lowering the cost of annuity purchases for DB pension plans: expert
July 28, 2022
Since January, annuity purchase costs have dropped between 10% and 15% while many pension plan sponsors have benefited from improved solvency positions. This offers defined benefit (DB) pension plans a few different options regarding their risk transfer strategy, according to Mary Kate Archibald, a principal at Eckler Ltd.
“In terms of investment strategies, one of the quickest things plan sponsors can do is implement a hedged portfolio—such as a combination of long bonds, corporate bonds or shifting into a full bond portfolio with a better match to liabilities,” she says.
Find more of Archibald’s advice here:
