Pension rule shift confusing for providers

The forthcoming compulsory lifestyling on stakeholder default funds has left providers confused abou...

The forthcoming compulsory lifestyling on stakeholder default funds has left providers confused about where they should move the money. Department for Work and Pensions (DWP) rules force schemes to move members' pension savings into less volatile investments at least five years from retirement. The DWP defines these less volatile investment as interest-bearing deposits or gilts, suggesting that its concern is the absolute value of the pension pot. Standard practice at many life offices is for assets to be gradually moved into long-dated gilts so that any change in value mirrors changes...