DC defaults are 'broad-brush' and could be better designed

One size does not fit all

Holly Roach
clock • 3 min read

Defined contribution (DC) investments could be “better redesigned” to meet the needs of different groups of savers, according to the Pensions Policy Institute (PPI).

The body's report ‘Could DC pension default investment strategies better meet the needs of members?' looks at how the investment of DC pension scheme assets in the default investment strategy could be redesigned to better meet the needs of certain groups of savers who do not fall into the typical member profile. It found as more people are now saving into DC schemes, the default investment strategy design will affect the future retirement incomes of more people and some people with particular characteristics may benefit from an increased focus on enhanced returns or reduced volatility th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pensions campaigner and former WPC chair Frank Field dies aged 81

Pensions campaigner and former WPC chair Frank Field dies aged 81

Field was a former Work and Pensions Committee chair and a welfare champion

Professional Pensions
clock 24 April 2024 • 5 min read
Crucial advice issue: Death benefits detail advisers need to know

Crucial advice issue: Death benefits detail advisers need to know

Important differences from previous regime

Andrew Tully
clock 05 April 2024 • 4 min read
British Steel a stark reminder of obligations around client files

British Steel a stark reminder of obligations around client files

Lawyer Philippa Hann reflects on her work around the pensions case

Hope Coumbe
clock 27 March 2024 • 2 min read