Towers Watson: Liability hedging de-risking and de-stressing

16 July 2013

Pension funds do not need to be told that they currently face a multitude of challenges and risks. Towers Watson believes liability hedging (also known as liability matching) is an effective way to help de-risk the scheme.

Towers Watson explains why pension funds might consider liability hedging, how it works and the potential pitfalls to its successful implementation. The paper also explains that liability hedging is not a single concept but comes in all shapes and sizes depending on the type of pension scheme involved and the attitude of its trustees’ sponsors and members.

The decisions and processes involved are not simple, Tower Watson  concedes, but the improvement in the scheme’s risk profile is generally well worth the effort spent.

Press release

Full paper

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