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Hugo Gravell FIA Barnett Waddingham “DC progress has been disappointing - but there's still hope"
➡ Read More about Barnett Waddingham For Professional Use only and should not be construed as advice
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C members have been standing at the crossroads for too long. The pension freedoms announced in 2015 promised a utopia of flexibility, personalisation with bigger pensions. Yet nearly a decade later, the industry has collectively failed to develop the products and infrastructure that members need to truly engage with their retirement and prosper. And the problem is only growing: the cost-of-living crisis is leading more members to explore accessing their pension in-work and DC is becoming a larger share of pension savings for members reaching retirement. People are being left floundering as they try to navigate a list of acronyms and jargon (e.g. UFPLS!) that could give sustainable investment a run for its money, let alone make informed financial decisions on how to make their savings last deep into their retirement. The real challenge for trustees – both own trust and master trust – is deciding where to focus to have the biggest possible impact on the quality of their members’ retirement. And that’s no easy feat with announcements from DWP, HMT, TPR and the FCA, alongside a cascade of consultations covering VFM, CDC, trustee decision-making, consolidation, and plenty more besides (did I complain about acronyms?). But, while progress has been disappointing, I’m excited about the opportunity we all have to make a real difference. Here’s three big areas we’re discussing with our clients. Private markets After decades of ‘easy money’ the outlook for public and private markets is by no means clear cut. The global economy faces huge uncertainty – compounded by global warming affecting people and economies today – and diversification has never been more important. Diversifying across asset DC Innovation Unleashed
