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

Gender pensions gap grows to £113,000

Gender pensions gap grows to £113,000

Report finds more than a third of women are likely to face poverty in retirement

Martin Richmond
clock 18 November 2025 • 3 min read
The FOMO-fuelled run on the pensions bank – where the Treasury is the only winner

The FOMO-fuelled run on the pensions bank – where the Treasury is the only winner

'You can't build a savings culture on a foundation of uncertainty'

Matt Storey
clock 17 November 2025 • 5 min read
Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Govt reportedly considering introducing a £2,000 salary sacrifice annual cap

Joseph Warne
clock 14 November 2025 • 4 min read