Steering towards greater member support
First and foremost, we would like to convey our thanks to all those who participated in our survey during this unprecedented period. We know the many challenges facing both individuals and organisations. The time that has been spent providing us with this valuable information is much appreciated.
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About this survey
At the time of collecting data for this survey, we were at the very beginning of the COVID-19 pandemic, and it’s fair to say that any longer-term effects this will have on Defined Contribution (DC) provision will only be known as time unfolds. The market turbulence will bring the opportunity to ‘stress test’ current investment strategies, and the challenges we have faced will likely prompt reviews to current practices and provision.
Our 2020 survey reflects relative consistency and stability since our previous survey. The high contribution levels from last year that were driven by the raising of auto-enrolment minimums have been maintained and there is little evidence of major changes in plan design.
A number of key themes have been drawn out of this report which we will explore in greater detail:
01
There has been a slowdown in scheme changes, particularly within the FTSE 100. However, there is still evidence of Plan sponsors looking to consider the vehicle they use for their DC provision and an increased focus on how design elements can support improved member outcomes.
02
Financial wellbeing continues to be an area of importance for organisations, and seems to be most prevalent amongst those that have adopted bundled solutions; master trusts in particular.
03
Many schemes have already altered their default designs moving towards targeting drawdown or a balanced at retirement outcome. The implementation of ESG has been firmly on the agenda with many looking to incorporate this into the default or seeing it delivered through adding more self-select options.
04
We have seen a steady reduction in pension scheme charges which will have a positive impact for members and the value of their savings at retirement. Our results show that FTSE 350 companies are looking to review the services that are made available to members, particularly in the run up to retirement, thereby further improving member outcomes at the point of access.
We believe this survey report to be the market leader in giving the clearest representation of DC pension provision in the UK. Whilst the results are based on information from some of the largest publically quoted companies in the country, they are relevant to any employer with a DC pension arrangement.
Title | File Type | File Size |
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FTSE 350 DC Pension Survey 2020 | 1.5 MB |