Defined contribution (DC) pension scheme members could be missing out on up to 70% additional retirement income because of inefficiently run schemes, according to a survey.
Research by Hewitt Associates, a global human resources services company, surveyed 106 DC schemes with more than 1.1m members and found many administrators do not run schemes as efficiently as they could. The research shows many fail to introduce simple mechanisms that could increase member income by up to 70%. The survey shows 70% of schemes do not use salary sacrifice, 53% do not use active management and 10% do not use open market option annuity, all of which incur no cost to the employer or employee. A total of 60% do not use intelligent contributions, which increase automatically a...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
