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...

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