Saturday, 27 May 2017

    Jargon Buster: De-risking

    De-risking: As members near retirement, their exposure to volatile investments such as equities gradually decreases and is replaced by bonds. The idea is to reduce the risk of members suffering significant losses close to retirement in the event of a financial downturn. De-risking can also happen at a scheme level, as a pension scheme gradually reduces its exposure to risky investments as it journeys towards full funding.

     

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