Pensions enjoyed a strong month in March, due to higher stock markets and higher interest rates
January was a mixed month for pensions, as higher interest rates and lower stock markets pushed pension assets and liabilities down last month.
A review of this year’s asset and interest rate performance and their effect on DB plan funding and DC retirement income.
Falling interest rates in June saw otherwise steady pension plans down 1%, with both model plans we track remaining in the black for the year.
Pensions saw a second consecutive flat month in May, as both assets and liabilities grew about 1%.
Pensions finances held steady in April, as higher stock markets offset lower interest rates.
Pension finances enjoyed another good month in March, capping the best quarter in memory, led by higher interest rates with stock markets playing a supporting role.
As of the end of February 2021, market interest rates are up significantly since the beginning of the year. For many plans, this will mean that 2021 lump sums are valued at interest rates that are lower than current market rates.
Pension finance enjoyed its best month in more than three years in February, buoyed by higher stock prices and higher interest rates.
In this article we provide our standard analysis of de-risking: how changes in interest rates and Pension Benefit Guaranty Corporation premiums may affect sponsor decisions to de-risk (or not de-risk) defined benefit plan liabilities in 2021.