VIDEO: Amy Kessler discusses how companies are de-risking their pension plans.
Insurance sector is leading the way to help manage today's pension challengesToday with the shift from defined benefit plans to defined contribution plans, most individuals need to both manage assets and make sure they don’t outlive their savings. “This is where the insurance community can be so impactful—both in helping defined benefit plans to manage their risk as well as helping defined contribution plans offer lifetime income benefits to plan participants,” says Amy Kessler, senior vice president and head of Longevity Reinsurance for Prudential Retirement.
Insurance companies, including the Prudential Insurance Company of America, offer viable solutions for defined benefit pension plans that transfer pension risk away from the plan sponsor and create real retirement security for plan participants. “In addition,” Kessler adds, “for defined benefit plan sponsors who don’t wish to transfer all of their risk, the insurance community can offer low risk, low volatility asset management solutions and longevity insurance, which combine to create a more sustainable risk position than most pension plans have today.”
Kessler discussed these options at the Geneva Association's two-day Life & Pensions conference in Geneva on Dec. 3 and 4 where industry experts focused on the fact that people are living longer, spending more years in retirement, depending more on social security than occupational pensions or personal savings and increasingly anticipating the need to work in retirement.
Interested in more information? Watch a video in which Kessler discusses pension risk transfer solutions. Want to speak with Amy? Contact Dawn Kelly.