The decision on the appropriate default fund is important. Financial journalist, Allison Plager reports
The future is defined contribution (DC). Indeed, Towers Watson’s FTSE Survey 2012 showed that one third of FTSE 100 companies offer DC schemes only to their employees, more than double the number in 2010.
This trend is set to continue with auto-enrolment and the advent of the National...
Jamie Jenkins, Standard Life, shines a light on identifying the right investment funds
Imagine for a moment that we were told we had to rewire our homes. Where would we start? We all know what we want the end result to be – light and power safely and efficiently installed in all the right places. But let us be honest, it is probably not something the majority of us would ever...
The DWP has sketched out the basic design for the default option to which schemes can add the detail explains Richard Parkin, Fidelity Worldwide Investment
We waited a long time for this year’s Department for Work and Pensions’ (DWP’s) guidelines for the design and governance of default investment options. These apply to defined contribution (DC) pension arrangements that are to be used for auto-enrolment from October next year....
Tim Banks, AllianceBernstein, argues for target date funds to be the new default for defined contribution schemes
The publication earlier this year of the Department for Work and Pensions’ (DWP’s) guidance for defaults in auto-enrolment defined contribution (DC) pension schemes has further raised the bar for pension providers and trustees. The principles laid down by the DWP, although not binding,...
Almost one in two Britons (45%) are unable to say whether they opted for the default option when they last reviewed their pension, according to new research conducted by Baring Asset Management (Barings). Over a third (35%) say they choose the default investment option.
However, one in five (20...
The Department for Work and Pensions has this week set out standards for default options in automatic enrolment defined contribution pension schemes in new guidance.
Commenting on the guidance, Mario Lopez-Areu, CBI senior pensions policy adviser, said: “With auto-enrolment coming in, it...
Getting the default strategy wrong is not an option explains Ian Buchan, Standard Life
Defined contribution (DC) is (mostly) about investment return. And the majority of the risk falls on the employees. Despite many attempts, employees still struggle to become self-sufficient (and experience now indicates they are likely to do more harm than good). Consequently we see extremely...
Nest Corporation has selected the fund managers for its first five mandates. These funds will together provide the building blocks for the Nest yearly target date funds (its default fund offering).
The five mandates are:
Mandate 1 - Passive Global Equities:
• UBS Life World Equity...
What is wrong with the DC scheme being married to the default option? asks Jane Kola, Wragge & Co
“It is a truth universally acknowledged that a DC pension scheme in possession of members must be in want of investment choice” to corrupt horribly the first line of Pride and Prejudice by Jane Austen.
Two of the Bennett sisters did indeed find men of good fortune who were...
DC members may be missing out by opting for the lifestyle strategy suggests Lesley Carline, independent consultant
Defined contribution (DC) or money purchase schemes are becoming the norm for most people joining companies. DC schemes have an inherent flexibility that is attractive to many people, but part of that flexibility requires knowledge and making decisions. Many members are wary and nervous of making...
The quest for the perfect default fund is almost impossible. Clive Grimley, Barnett Waddingham, rises to the challenge
The last 12 months have tested the mettle of defined contribution (DC) investors. Many of these are new to DC, having left the comfort of a defined benefit scheme where somebody else is responsible for investment decisions. To this group in particular, it will be a great concern to receive this...
