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...The BlackRock research found the recent volatility has also increased interest in retirement products that protect defined contribution plan participants from big market swings....
...Since the automatic enrolment policy was introduced in 2012, more than 10mn savers have been brought into workplace pensions, many now in mega funds, also known as master trusts....
...Should I sell property and put funds into my pension?...
...PEPs allowed investments in authorised unit trusts and investment trusts if at least 75 per cent of the value of the investments held by the fund were invested in eligible UK companies....
...The ‘super’ size advantage First, Australian pension schemes are big defined contribution (DC) funds, with all the extra investment muscle and cost efficiencies that brings....
...More than $10.4tn is in US defined contribution pension plans, and another $5.8tn is in individual retirement accounts, per the ICI....
...And the wild differences between the investment performance of defined contribution default funds of UK master trusts — a type of pension scheme where multiple employers in different areas pool their staff...
...Private-sector workers in the UK are moving away from defined benefit pension schemes — where they receive a guaranteed income for life based on their final salary — to defined contribution schemes, where...
...This trend continued in the fourth quarter of 2022, and the ONS reckons that equity holdings for both DB and defined contribution (DC) pensions combined ended around £130bn lower than they began the year...
...Unlike traditional “defined benefit” pension plans, where retirement income is guaranteed, newer “defined contribution” plans provide no certainty over eventual retirement income, with outcomes largely dependent...
...The reforms seek to do that with a pact among a number of large financial service firms to allocate at least 5 per cent of their defined contribution default fund client assets to unlisted equities by 2030...
...(I’m referring to company-funded DB pension schemes; a “defined contribution pension” isn’t a pension, as the dictionary defines it: it’s an at-your-own-risk investment product with tax relief.)...
...Yet here we have His Majesty’s Treasury blithely asserting that “reforms to defined contribution pension schemes will increase a typical earner’s pension pot by 12 per cent over the course of a career”....
..., pushing money into defined contribution schemes; assets that wealth managers can charge a fee to manage....
...The sensible alternative, however, is in the middle — collective defined contribution schemes: eternal funds that promise pensions based on actual long-term returns....
...To complicate matters further, defined-contribution assets are roughly equally split between trust-based schemes (regulated by The Pensions Regulator) and contract-based structures (generally operated by...
...contributions to their company retirement fund....
...L&G’s Wilson said that defined-contribution funds could be similarly mandated to invest 10 to 20 per cent in growth equity and infrastructure....
...“Defined contribution” pension funds are in a very different place and offer a far more optimistic outlook. This is where attention should be paid to the regulatory environment....
...We will give new powers to The Pensions Regulator and Financial Conduct Authority to ensure better value from Defined Contribution schemes by judging performance on overall returns not cost....
...However, she was dismayed to discover after Mark’s death that the rules of the policy enabled Northern Trust to claw back employer contributions made to his workplace defined-contribution pension which amounted...
...Official numbers put defined contribution pensions membership, where the saver bears the risk of their eventual retirement income, about 55 per cent higher than defined benefit schemes....
...I will also consult on giving savers a legal right to require a new employer to pay pension contributions into their existing pension pot if they choose, meaning people can move to having one pension pot...
...In the UK, most sponsoring companies have sought to limit their exposure to pension fund liabilities by closing their defined benefit funds to new members and establishing defined contribution funds, in...
...Most are in defined contribution pensions, where they have to manage drawing an income on their own....
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