Rapid future growth predicted for pensions

A UBS study shows DB schemes are set to continue to grow but trustees are likely to concentrate more on targeted return strategies

While pension assets as a whole will grow faster than the economy over the long term, the main obstacle remains the lack of incentives to savings for those on lower incomes, according to UBS. A study into pension fund investment by the group predicts that by 2013, combined assets in personal, stakeholder, defined benefit (DB) and defined contribution (DC) schemes will be near the £1,600bn mark. It also believes the assets in DC schemes will double over that time period, while those in DB schemes will continue to rise, from £550bn in 2003 to £700bn by 2013. According to the authors of th...