9 January 2023
I remember this time last year looking ahead to 2022 and thinking “it’s got to be easier than 2021” – what a fool I was!
Some frustrations of 2022 were predictable; like delays in important pensions reform, uncovering historic data issues as part of GMP equalisation projects, or England men’s World Cup ending with a penalty howler after the lionesses showed us what success looks like! However, I’ll hold my hands up to not foreseeing a war on European soil, RPI reaching 14%, or the Bank of England having to step in to stop the third (of four) chancellors in the year causing financial meltdown.
However, 2022 was not all bad news, many schemes now find themselves with smaller deficits and long-term targets much closer than they previously expected.
Once bitten, twice shy, I’m not going to predict the road ahead for 2023 being any less bumpy than 2022, for those involved with DB schemes:
- The new economic landscape means schemes will need to re-evaluate their journey plans.
- Improved funding positions may mean work needs to be accelerated to seize upon opportunities to de-risk; and
- Regulatory challenges will continue at pace – with the recently released funding code and upcoming final single code of practice, in particular, requiring significant consideration.
However, January is a great time to make the journey through 2023 as smooth and easy as possible by taking a moment to consider the known challenges ahead and prioritise / plan accordingly.
Our roadmap for success is designed to help you do this, giving our views on what trustees’ key areas of focus should be, as well as providing links to a range of more detailed resources.