More people are enrolled in UK defined contribution pension scheme and more money is invested in those schemes than ever before. As a trustee or an employer who sponsors a DC pension plan, you face an increasing array of requirements and risks as you try to secure the best outcomes for your members with scarce resources.
In turn, your members need more help. Most DC pension scheme members are not saving enough for retirement and many do not understand the benefits they receive. The rising cost of living is exacerbating financial pressures on members.
Many defined contribution pension schemes have failed to keep up with changes in the industry since auto-enrolment began in 2012 and pension freedoms took effect in 2015.
The complexity of running a DC pension plan means many trustees and sponsors are over whelmed. We are here to put you on track and help you focus on the most important issues and best outcomes for your members.
Gail Philippart, UK DC Consulting Leader
Interlinked issues for employers, trustees and members include:
- With businesses face rising costs, you may be getting poor value from your DC pension scheme or paying too much in charges.
- Auto-enrolment processes for many schemes have not kept up with changes, leaving you exposed to financial penalties and reputational risk.
- Does your DC pension arrangement add value to your reward and benefits package, and help with retention and succession planning?
- Have you got the time, resource and expertise to deal with the burden of governance requirements and regulation?
- Do you spend the right amount of time adding value through your oversight vs worrying about compliance?
- Are you agile and informed enough to get the investment returns needed by your DC plan members in a volatile, complex environment?
- Do your members have access to the support and resources they need to help them make the right choices?
- Ensuring employees understand their DC pension scheme and associated benefits can increase the perceived value of the DC plan.
- As employees look to their employers for support and advice, you may be able to help them pay less tax through a salary exchange.
To deal with these challenges you need a coherent strategy for your DC pension plan. Our teams are here to help you establish and implement a plan that will put you and your members on track.
Here are some areas where we can assist you with a refreshed strategy:
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