Navigating change: get the most out of your actuarial consultant
The UK pension scheme market is changing. While schemes continue to mature, their priorities and needs evolve.
As the number of pensioners increases, schemes’ cashflow is becoming restricted, or even negative. To secure benefits for their members, as well as their need for security, schemes must reconsider their strategy. This includes asking if they have the right strategic partner to meet their needs.
Previously, changing actuarial consultant has been uncommon. However, according to our report, almost half of schemes will have changed or are considering changing their actuarial consultant in the next year.
Despite being ready for change, trustees may not have fully considered what skills are needed from a new adviser, or what priority they should give them. Furthermore, without measuring the value an actuarial consultant adds to a scheme, it is hard to determine what value change will bring. Once a scheme has identified what it is they require from their consultant, they will be better placed when choosing the right strategic partner.
"Free thinking and independence is one of the most sought-after qualities. Schemes entering this period of their development are after something new and a flexible and adaptable consultant that is not tied down by ‘the way we’ve always done things’ or house rules on how clients are managed will find they have many more clients willing to give them a hearing."