UK- Setting up an effective default fund investment strategy will be a crucial step in ensuring auto-enrollment works for everyone, the Investment Management Association says.
He said: "How their money is invested will be crucial. It will need to make sure adequate returns are delivered over the working lifetime of the holder, while avoiding excessive exposure to market risk at the point of retirement."
Saunders said it was not just a personal accounts issue, but one which applied across DC schemes in general and will become "increasingly important".
"There are several approaches that have been advocated but as yet no clear consensus on the way forward. We are going to see a broader industry discussion on this, for which I hope the forthcoming consultation on investment issues by the Personal Accounts Delivery Authority will prove a catalyst," he added.
Saunders also said as DC becomes the standard for pensions across the country the important of investor education will continue to grow.
He explained: "In a world of DC and personal accounts, investors will need to understand the new sorts of risks they will bear and that, while risk can never be eliminated, it can be managed.
"They will need to understand the consequences both of excessive risk taking and of excessive caution. They also need to be aware of the implications of not saving enough money.
"A major challenge for the industry in future is to educate investors about the potential risks before they arise so they can make well-informed decisions throughout."
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.