UK - Low paid workers investing in DC schemes should invest in high risk funds rather than lower risk options.
Mercer Human Resource Consulting partner Dick Strattan said DC members should take note of government schemes – such as the S2P and MIG – which guarantee workers a minimum standard of living in retirement.
Strattan said that if an employee was unlikely to get a pension bigger than this guarantee, he should invest in higher risk and potentially higher gain funds knowing that if the gamble did not pay off, then he would still have the government’s guarantee to fall back on.
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.
Some 56% of defined contribution (DC) asset managers do not believe they will have transaction cost information in time for pension funds' March year-end statements, according to Lane Clark & Peacock (LCP) research.