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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Adviser chases Hartley Pensions for ten months over clients' SSAS transfer

Adviser chases Hartley Pensions for ten months over clients' SSAS transfer

Takes case to The Pensions Ombudsman

clock 10 September 2026 • 2 min read
Pension changes to impact more than half of advised clients

Pension changes to impact more than half of advised clients

Advisers’ biggest concern is not understanding the pension IHT rules

Sophia Panayi
clock 09 September 2026 • 2 min read
HMRC updates on information sharing for IHT on pensions

HMRC updates on information sharing for IHT on pensions

Second technical note

Alex Levy
clock 01 September 2026 • 2 min read