Effective default 'crucial' for auto-enrolment - IMA

Speaking at the Westminister and City conference on personal accounts and auto-enrolment, IMA chief executive Richard Saunders says 80% to 90% of people auto-enrolled into personal accounts will fall into the default fund. "How their money is invested will be crucial," he says. "It will need to make sure adequate returns are delivered over the working lifetime of the holder, while avoiding excessive exposure to market risk at the point of retirement." Saunders adds it was not just a personal accounts issue, but one which applied across DC schemes in general and will become "increasingly...