'Young savers too cautious'

A survey shows more than 20% of pension fund members who started an additional voluntary contribution (AVC) arrangement in 2006 chose to invest all or part of their assets in cash. Gary Smith, a senior consultant at Watson Wyatt, says trustees do not give members enough investment advice to make the most out of their savings. He says this leads to a general perception that risk means investments might fall so people put their savings in cash. He says: “There are some quite simple ways of communicating investment options which could be done through written material.” Less than 5% of in...