DC schemes now most common for private sector

A new study from the Pensions Institute at Cass Business School presents a thorough examination of the strategies currently in use in both trust- and contract-based schemes

For economic reasons that have been well documented, in the 21st century many finance directors no longer consider Defined Benefit (DB) pension schemes a rational investment. As a result, defined contribution (DC) is now the most common arrangement for employees in the private sector. In the late 1990s, DC schemes saw little in the way of innovation in suitable investment strategies for members. That is changing with the advent of better asset allocations and improved delivery mechanisms, particularly for the majority of members who opt for the default fund. A new study from the Pensions...