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Anticipated retirement outcomes for members are 5% higher than pre-pandemic levels. Master Trust take-up expected to grow at an even faster rate. |
Commenting on the latest ‘DC Master Trust Default Fund Review’, Shabna Islam, Head of DC Provider Relations, at Hymans Robertson, says: “The last few years have brought many challenges to both DC Master Trust default funds and their members yet it is encouraging to see from our latest analysis that in, general, anticipated retirement outcomes for members are higher than pre-pandemic levels. We expect the trend of schemes moving to a Master Trust to continue, with take-up expected at an even faster rate. “Members today are faced with complex retirement decisions but typically have a lack of knowledge about who to turn to for help and advice. Master Trust providers must work to ensure that members do not blindly head through accumulation in an inappropriate default strategy, and approach retirement unprepared for decisions they must take around how to fund a sustainable retirement income. Offering members frictionless journeys between pre and post retirement should become a prerequisite for providers seeking to support good member outcomes. “As we enter a new post-Covid period, our analysis shows that there is a range of investment approaches adopted by providers, with some expected to support better member outcomes than others. Providers must ensure that improving member engagement remains a focus and is supported by effective, targeted communications to encourage better retirement planning, and decision making, before it’s too late.”
A copy of the Master Trust Default Fund Review can be accessed here. |
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