According to official statistics, many retirement savers in the United Kingdom contribute close to the minimum levels as defined by automatic enrolment.[i] We know that for many, this will not be enough for people to live comfortably in retirement. Defined contribution (DC) plans have certainly shifted the financial risk away from companies to individuals. However, plan sponsors may still feel that the reputational risks remain with the company.
As part of our 2019 global survey of retirement goals and challenges, we interviewed 195 DC plan sponsors globally, including 45 from the UK. Here, we’re sharing 6 country-specific highlights:
Plan sponsors often have competing priorities when it comes to overseeing the pension plan and meeting their company’s strategic objectives. Our survey found that 67% of plan sponsors were willing to delegate the selection of specific funds in the default, which could reflect their desire to focus day-to-day work on other matters.