Target date funds 'to dominate DC'

Research into the US 401(k) system carried out by DC provider Friends Provident and consultancy firm TOR Financial has shown a clear trend of convergence between the US and UK systems. Friends Provident Life and Pensions managing director Simon Clamp says: "Our primary purpose was to examine what was taking the market forward. "When you look at the UK and US markets, you see there are quite a few similar challenges - how do you plan for future eventualities and getting the right return at the time of retirement?" Clamp adds auto-escalation and target date practices were a positive ste...