DWP explores protection fund for DC schemes

clock

The Department for Work and Pensions (DWP) is considering setting up a lifeboat fund for defined contribution (DC) schemes funded by a levy on contributions.

Pensions minister Steve Webb revealed yesterday this is one of several options which could be included in a white paper on reinvigorating occupational pensions to be published before the end of the year. Speaking at a Dimensional conference on risk-sharing, Webb said the working group looking at the ‘DC-lite' strand of his defined ambition agenda is focusing on guarantees. He said money-back guarantees are not necessarily prohibitively expensive with the cost estimated at between 60 and 100 basis points by the Actuarial Profession (PP Online, 24 October) and some providers prepared to...

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 Investment

Tyndall Partnerships head Sullivan on bespoke empowerment

Tyndall Partnerships head Sullivan on bespoke empowerment

‘No two IFAs invest in the same suite of models’

Isabel Baxter
clock 09 December 2024 • 4 min read
Smoothed funds set to be a 'bigger asset class for the advice market'

Smoothed funds set to be a 'bigger asset class for the advice market'

‘An attractive low-risk solution for retirees’

Isabel Baxter
clock 25 November 2024 • 3 min read
Advisers no longer see inflation as a major concern

Advisers no longer see inflation as a major concern

Funds offering a level of inflation protection were the last research, Square Mile finds

Isabel Baxter
clock 22 October 2024 • 4 min read