With income levels on traditional assets such as cash and government bonds having fallen in recent years, pension schemes have found it harder to meet their future cash-flow obligations, as well as continuing to achieve sustainable growth. Additionally, as contributions decline, schemes are often struggling to manage cash flow effectively in order to meet near-term commitments.

By investing in suitable income products, schemes may be able to make their investments work harder to deliver on their dual objective of generating income to meet cash requirements and growing capital over time.