Behavioural Insights To Navigate Through Pension Scheme Risk Settlement

Schemes are increasingly taking action to manage longevity risk through risk settlement actions, with bulk annuity and longevity swap transactions covering over £55bn of trust-based pension scheme liabilities in 2020.

In conjunction with behavioural insight agency Behave London, Aon carried out research to explore trustees’ understanding and views on longevity risk, the options available to reduce that risk and identifying behavioural biases that could impact these decisions.

This step by step guide will help schemes navigate the de-risking market and covers:

• How to reduce risk and identify behavioural bias
• Learn what it means to take longevity and demographic risks out of a defined benefit pension scheme.
• A breakdown of the de-risking process from start to finish
• Understand where your scheme might get stuck
• Insights to what stops schemes reducing longevity risk
• Identify the most common behavioural biases that were demonstrated in the research and the impact these have on decisions when reviewing the best long term strategies

View the guide

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