Pensions - Articles - DC Pensions Tracker results for Quarter 1 2022


Aon has released its DC Tracker Q1 2022 update, which found that the expected living standard in retirement provided by DC savings was higher than at the end of the previous quarter.

 However, the findings mask a more complex picture for the different age categories.

 Strong investment returns, particularly on equity assets, meant that it was a good time to be an asset holder. These strong returns (in isolation) increased the expected retirement incomes for all our sample savers. However, the effect was much more pronounced for the savers with the larger DC pots already built up (the 40- and 50-year-old members). While the younger savers also benefited from this, their existing fund value is relatively small and the majority of their benefits will be built up in the future so the returns had less of an impact on the overall potential retirement benefits for them.

 However, generally, growth assets fell in the first quarter of 2022 and we look set for a period of high volatility due to ongoing geopolitical tensions and their knock-on effects on the economy.

 Please find the full update
  

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