How does the performance of my DC default solution affect the retirement outcomes of my employees?
In the second edition of Auto Enrolment (AE) Watch, Maria Nazarova-Doyle of JLT Employee Benefits assesses the impact of DC default fund performance on member outcomes.
Earlier this year, Professional Pensions teamed up with JLT Employee Benefits to launch AE Watch, an initiative that examines the investment performance of DC default funds in a bid to enhance transparency in our industry.
In this instalment of AE Watch we look at hot-off-the-press data (as at the end of Q3) covering the growth phase of major defaults in the UK market – eight master trusts and nine contract-based providers – and we attempt to answer the important question: what does it all mean for savers? To find out, we analysed the difference between investing in the best- and worst-performing default funds and modelled how this might impact long- term outcomes for savers at retirement.
For further information please contact Maria Nazarova-Doyle, Head of DC Investment Consulting on +44 (0) 20 7309 8108 or email firstname.lastname@example.org.