• 05-DEC-2016

The need for support for defined benefit retirement plans has never been greater, as “New Paternalism” for defined contribution schemes increases complexity

PwC rated as a Vanguard Leader by ALM Intelligence for Retirement Consulting: Defined Benefit and Retirement Consulting: Defined Contribution.

According to ALM Intelligence’s report, ‘Retirement Consulting: Defined Benefit’, defined benefit plans still hold the lion’s share of the retirement consulting market and with pension risk being the biggest focus for plan sponsors, the need for outside support has never been greater. The report states that:

“Consultants will continue to be a valued asset to plan sponsors in the years to come, assisting clients in making smart investment choices that minimise risk while ensuring pension liabilities remain at manageable levels. De-risking pensions will be at the forefront of consulting spend along with transformation capabilities used to assist sponsors in transitioning from pure DB to DB/DC hybrids and ultimately pure DC in many cases, placing most of the liability on the employee versus the employer. Throw into the mix the increasing need for IT innovation and you have a market that still calls for extensive suites of consulting capabilities to manage DB retirement plans.”  

Amongst the 21 firms evaluated by ALM in the Retirement Consulting: Defined Benefit report, PwC has been positioned as Vanguard Leader with some of the broadest and deepest capabilities in the market.

The report states that:

“Utilising its broader service offerings in areas such as finance, tax, risk, and strategy, PwC brings comprehensive consulting capabilities to its defined benefit clients. It is through this breadth of capabilities that the firm draws innovation and brings them to plan sponsors, such as the Iccaria longevity risk solution to improve the longevity swap process, and Skyval, an online analytics tool geared toward greater risk management, investment strategy, and liability modelling among other capabilities.”

And that:

“PwC’s objective advisory support in combination with innovations to manage pension plans more responsively and effectively resonates well with DB clients.” 

In addition, ALM Intelligence’s report, ‘Retirement Consulting: Defined Contribution’, employers are now faced with increasing challenges to ensure that their retirement plans are fair and competitive while still remaining cost effective for sustainability. The report states that:

“Defined contribution plans have been increasing in frequency at an exceptional rate, particularly over the past decade. Thus, the continuing shift from DB over to DC is not a new phenomenon for employers and consultants. But a more current trend within the DC space related to this transition that has gained significant traction in recent years is the growing desire on the employer side of DC plans to ensure their employees are adequately prepared for retirement under a system in which responsibility ultimately falls on the individual. The “new paternalism,” as it is increasingly called, sees employers paying particular attention to employees’ financial wellness and retirement readiness at an individual level.”  

Amongst the 22 firms evaluated by ALM in the Retirement Consulting: Defined Contribution report, PwC has been positioned as a Vanguard Leader with some of the broadest and deepest capabilities in the market. The report states that:

“PwC’s holistic approach to the defined contribution consulting space, utilising the firm’s extensive suite of HR capabilities from its human capital practice, assists clients in developing competitive retirement offerings tailored to their specific workforce demographic. With a strong strategy and analytic background, PwC is able to offer objective recommendations for clients in investment strategy and vendor selection.”

And that:

“The firm’s [PwC] approach to understanding each client’s unique workforce also leads to effective communications strategy for clients that ensures strong participation from their employee base and plan design derived from predictive analytics of where a client’s company is going in terms of workforce and the retirement needs that will follow as a result.” 

PwC’s global Retirement & Pensions consulting network leader, Raj Mody, said: “It’s great to be recognised at the forefront of retirement consulting. We’re proud to be able to help clients respond to complex and evolving conditions, using our expertise and technology together in smart ways, enabling clients to focus effectively on their people and core business.”

PwC’s Joint Global People and Organisation Leader, Jon Williams, said: “We’re pleased to be recognised as a Kennedy Vanguard Leader for Retirement Consulting. Retirement and Pensions is part of our wider People and Organisation approach which helps clients across the spectrum of their complex people challenges and opportunities.

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