As more and more people choose to stay in work until later life, defined contribution (DC) pension plans are working through communication and engagement strategies to address the challenge of longevity. Despite its successes, auto enrolment has failed to create awareness around adequate retirement incomes.
The DC Pension Design & Investment Europe 2020 will illustrate how DC schemes are encouraging members to take control of the trajectory of their retirement. In light of a very compelling master trusts framework, the report considers whether stand-alone DC trusts will continue to be viable. Regulatory protection of individual savers has made it nearly impossible for DC pensions schemes to access illiquid and private market assets and there are calls on policymakers to resolve this.
Meanwhile, private markets specialists have collaborated with DC pension plans to create some open-ended investment vehicles with daily valuations and dealings, which this report will explore. DC pension plans are not exempt from the pressures around ESG and climate risk, so the report is completed with an examination of the challenges in integrating ESG into default funds.