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."
Ex-BHS owner Dominic Chappell has been ordered to pay a total of £87,000 in fines and court costs after he was found guilty of failing to provide The Pensions Regulator (TPR) with information.
The Department for Work and Pensions (DWP) has said it while believes in the benefits of consolidating defined benefit (DB) schemes, there are significant issues to overcome.
There is just one week left to register to enter the Workplace Savings and Benefits Awards 2018.
Nearly a third (32%) of employers believe new technologies, such as augmented and virtual reality, will play a part in benefits communications, latest research from Aon Employee Benefits reveals.