Less is more: Drawing the line on DC fund choice

NEST's Mark Fawcett looks at the paradox of choice

clock • 3 min read

With more than 90% of auto-enrolled workers likely to stay in the fund they are defaulted into, where do schemes and advisers draw the line on fund choice? Mark Fawcett shares some insight...

Reducing consumer choices can greatly reduce anxiety, so argues psychologist Barry Schwartz in The Paradox of Choice. In his case, American shoppers were the group in focus. However, more defined contribution (DC) pension schemes are also recognising that fewer choices could make for less anxious auto-enrolled savers. How many choices are too few? How low can the number of alternatives go before it's at odds both with the regulatory guidance and what clients' workers need? Or is this less about the number and more about the variety a scheme's fund range offers? The consultation tha...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Mind the gap: Why advisers have a key role in closing the gender pension divide

Mind the gap: Why advisers have a key role in closing the gender pension divide

'While access to pensions has improved, barriers remain'

Julia Peake
clock 22 October 2026 • 5 min read
Planning points: Paying pension funds to charity on death

Planning points: Paying pension funds to charity on death

IHT on pensions may create opportunities for charitable giving

Martin Jones
clock 16 October 2026 • 3 min read
Torsten Bell: Pensions industry must 'give ground' to what savers trust

Torsten Bell: Pensions industry must 'give ground' to what savers trust

Torsten Bell says what the industry is doing is a ‘triumph’, but there must be transparency

Holly Roach
clock 15 October 2026 • 1 min read