Pensions - Articles - LCP highlights the need for a rethink on DC pensions risk

 An overhaul of defined contribution risk management is crucial to garner trust and for the success of auto-enrolment, say scheme and investment managers.

 Paul Black, head of DC investment services at LCP said: "DC strategies haven't focused enough on investment risk, which so far has involved putting more focus on getting as good returns as possible using risky assets that haven't necessarily delivered - and that's really harmed DC.

 "Members look at them and see asset values moving up and down quite dramatically."

 He said managing and communicating investment risk is "absolutely vital", particularly for those who end up in the default fund, and don't have a great understanding of financial markets and pensions.