Expected standard of living in retirement for DC savers on the rise

Falls in actual returns were offset by rises in expected future returns

Jonathan Stapleton
clock • 2 min read

The expected future living standard in retirement provided by defined contribution (DC) savings rose during the second quarter, latest analysis by Aon reveals.

The consultancy said its UK DC pension tracker rose over the three months to the end of June but said this "surprising" rise in expected future living standards masked a more complex picture, and one particularly driven by expected returns rather than the reality of current markets. It said the DC tracker fell from 61.3 to 58.1 looking at the actual returns over the period and ignoring future return changes. However it noted, as with the last quarter, this fall which was due to actual returns over the period, was more than offset by an increase in the future expected returns on saving...

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