The price of inflation protection for trustees

The following piece originally appeared in Professional Pensions

Inflation is back and it is posing challenges to pension schemes, including to the value of benefits, assets and liabilities. And, for trustees, there is one particularly hot topic: the price of protection.

Getting inflation under control will not be easy for policymakers, given the extent of pressures on food and energy, but it must be done as real incomes continue to decline. Interest rates have already risen and look set to increase further. Central bankers tasked with hitting inflation targets have little choice but to raise rates, even though growth is slowing sharply. Any other course of action risks entrenching higher inflation expectations and prolonging the pain.

David Brickman spoke to Professional Pensions about the need for trustees to prepare for an extended period of market volatility.

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