Pension funds and investment management

Workplace pension providers report that an overwhelming majority of enrolees stay within their default fund. Ensuring that the default scheme’s investment strategy matches the employer and employee profile has therefore become more important than ever.

As of 2019, over 10 million employees have been enrolled in a workplace pension scheme 175,000 new employers needing to set up schemes every year 95% of enrolees stay in their default fund Most are unaware alternative fund options are available  

Employers and their advisers must spend time and resource ensuring that their chosen workplace pension scheme is aligned with the needs and wants of the workforce. And one of the most important considerations remains investment management.

In their third annual guide on analysing workplace pension default funds, Defaqto have identified three factors that will help employers and advisers assess whether the investment management procedures of a pension fund offer value for money for members:

  1. Investment strategy
  2. Working practices
  3. Individuals involved

Want to see how Nest stacks up against the rest when it comes to value for money? Read Defaqto’s guide on ‘How to analyse workplace pension default funds’.

Get your essential Defaqto guide today