By Mark Crump, Business Development Director
In the intricate world of pension schemes, where every digit in a calculation can cascade into significant consequences, a spotlight has been thrown onto a jarring statistic: it's estimated that 1 in 3 pension calculations are found to be erroneous upon audit.
It’s for this very reason that it’s pivotal for schemes to understand why the auditing of pension benefits is not just beneficial, but crucial. This especially rings true when considering ‘de-risking’ endeavours, an increasingly popular strategy employed by schemes to stabilise and secure their financial futures against unforeseen market shifts.
Incorporating technological prowess into pension scheme auditing with Heywood
At Heywood, we’re acutely aware of the challenges schemes face in ensuring their benefit calculations are accurate. That’s why we’re pioneering the future of pension administration benefit auditing, and our most recent technological acquisition, Idiom, exemplifies this.
In an environment where time equates to money, expedited and accurate benefit calculations embody efficiency and herald a new epoch wherein we can anticipate and remedy financial miscalculations before they become monumental issues. In crucial areas such as buy-ins or buy-outs, GMP projects, and in-depth data and benefit audits, this technology is not just a step but a giant leap forward.
De-risking and the undeniable value of comprehensive auditing
Delving into the detail of de-risking, comprehensively auditing pension benefits is worth its weight in gold.
When the complete liabilities of pension schemes are meticulously audited and laid bare, insurers can adequately gauge the risk they’re taking on. Armed with a clear picture, they are often inclined to offer lower premiums, safeguarding organisations against higher financial outlays and thereby, optimising de-risking efforts.
Think of it as having a thorough medical check-up before being quoted for life insurance. With all the potential risks and issues laid out transparently, your insurer can confidently ascertain your premium - perhaps even reducing it due to the transparency and mitigated risk.
In the financial world, a thorough audit plays a similar, pivotal role, especially when organisations contemplate steering their financial ship through the potentially choppy waters of de-risking.
Heywood Passport - steering your scheme towards a stable financial future
In the complex labyrinth of pensions, benefits, and financial strategies, Heywood emerges as a compass, navigating with unparalleled efficiency and precision through the meticulous auditing process.
Our latest service offering Heywood Passport, acts as your step-by-step guide through the de-risking process, ensuring that pension schemes are not only promising but unequivocally delivering every bit of financial assurance to beneficiaries, schemes, and their trustees alike.
In essence, amidst the numerical complexities and financial jargon, ensuring the accuracy of pension schemes through best-in-class technology isn’t just a wise strategy, it’s an essential one, ensuring a sturdy and secure financial path for both beneficiaries and schemes.