UK - Trustees must consider risk, investment options and manager style when establishing DC schemes, according to a leading investment manager.
ICI Investment Management managing director Graham Allen said: “The prime consideration has to be risk and the need for diversification.
“They will also need to look at the number of types of investment options that they should offer in order to achieve adequate diversification and minimise risk.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.