Defined contribution

Whilst defined benefit schemes seem to grab all the attention, more and more employers are using defined contribution arrangements to meet the retirement needs of their employees. As members’ funds grow, so does your responsibility to ensure these arrangements remain fit for purpose and support your employees’ retirement plans.

You will want to make sure that the charges are fair, the investment options are clear and logical, and that your employees understand how to control their risks as retirement approaches.

There are a few key messages we think you should be aware of now, in particular how much your employees’ retirement income will depend on the:

  • Charges that are levied on their pension pots,
  • Investment choices you make available, particularly the default fund,
  • Amount you and your employees contribute, and
  • The pension arrangement you select will therefore form a critical part of your employees’ retirement planning.

Further, choosing the best sort of income in retirement is not straightforward, but with the right communication and engagement, you can help your employees make well informed choices.

Whether you want help with all aspects of your defined contribution scheme, or just to check that what you are doing is reasonable, we can help you meet your objectives with our simple no nonsense approach.

For further information on all things defined contribution, please contact Alan Smith (01733 393040), or your usual First Actuarial contact.