Default fund

The pensions industry could face legal challenges from members who have been locked into lifestyle strategies, according to a defined contribution specialist.

Approaches to defined contribution default funds vary widely across Europe, according to research from the European Insurance and Occupational Pensions Authority (EIOPA).

Defined contribution default strategies within FTSE100 and FTSE250 firms have not diversified away from pure equity exposure, Schroders research says.

The Organisation for Economic Co-operation and Development has said auto-enrolment is making good progress but pensions minster Steve Webb wants to ‘manage expectations' before early opt-out rates are published.

TPR’s latest checklist to help you prepare

In the run-up to automatic enrolment, Emma Jones examines guidance for schemes' default investment option

Default funds are firmly in the industry's spotlight after the Association of British Insurers and the Investment Management Association announced joint initiatives to "build standards" in the area.

Almost nine out of ten defined contribution members cannot name the funds their contributions are invested in, according to research from Standard Life.

Employers can increase the value of their employees' pension pots by up to 40% purely through better governance, without upping their contributions, JLT Benefit Solutions research has claimed.

Standard Life has overhauled its corporate investment range, introducing default options specially tailored for auto-enrolment.