Establishing whether a DC arrangement is fit for purpose increases the likelihood of achieving good outcomes in the future.
The views of savers and employers are most relevant in assessing ‘what good looks like’ in Defined Contribution (“DC”) pensions.
We’ve reviewed third-party studies in order to form an independent view of what savers and employers want from DC. The Government is encouraging private-sector retirement provision, as shown by the introduction of auto-enrolment. So, we’ve sought to capture the Government’s views to provide as comprehensive a perspective as possible. We’ve distilled these views into four straightforward questions that can be used by employers, savers and advisers to evaluate existing DC provision or help set up new provision:
1. What will I get out?
2. How much needs to be put in?
3. How much will be charged in fees?
4. Am I on track?
Successfully establishing whether an arrangement is fit for purpose increases the likelihood of achieving good outcomes in the future.
The full research piece is available here