Supermodel: re-evaluating defined contribution

The shift from defined benefit (DB) to defined contribution (DC) pension provision swept through the pensions industry like a tsunami, shifting the risk of providing pensions squarely from the bosses onto the workers. During the past 20 years, DB scheme closures have accelerated to the point of no return and DC has become the norm. However, a paper from academics at the Pensions Institute said the new(ish) guard of pension provision was “very badly designed” and needed a wholesale rethink. Director Professor David Blake said most DC schemes were currently in a bad place because they w...