As non-linear careers and later retirements become more commonplace across Europe, defined contribution (DC) pension schemes are playing a more pronounced role across the pensions landscape. Despite shortcomings across the US and Australian markets, European DC schemes have still failed to address fundamental issues regarding member engagement, illiquid assets and pension pot longevity.
The DC Pension Design & Investment Europe 2021 will investigate the developments across this industry, including the latest challenges pension sponsors and trustees are facing. This report brings to light the new Value for Member Assessments initiated by the regulator, and what this means for smaller DC pension schemes going forward. A deeper look into member engagement strategies and communication tools reveals that more can still be done to educate pension plan members on the need to save from a younger age. A new focus on volatility managed strategies and tactical fund options are also discussed. With the role of Master Trusts schemes playing an increasingly prominent role across the European landscape, it is a more important than ever to reflect on lessons learned from schemes across the continent.
The continued prominence of ESG and Technology is also reviewed in this report. With a focus on how trustees can use these advancements to restore faith in pensions after the crises experienced in 2020. The report concludes with a look towards the future of this industry, how the evolution of DC schemes has allowed it to address many shortcomings, and what this holds for future developments.