Defined contribution (DC) pension scheme investors are now being offered a wider choice of funds, according to research by the Pensions Regulator (TPR).
Its Scheme governance survey 2013 found that:
- The proportion of schemes offering just one investment fund has fallen from 32% in 2009 to 18% in 2012.
- In the past year, the proportion of schemes offering a range of 21 to 50 funds has increased from 5% to 11%.
- In the past year, the proportion of schemes offering more than 50 funds has increased from 3% to 11%.
Laith Khalaf (pictured), head of corporate research at Hargreaves Lansdown, said: “Ideally, members should be offered the choice of the best funds from across the market.
“The key is to present information about their choices in such a way that members can quickly and easily gravitate to the right investments for their needs.
“This kind of specialised member communication can make a huge difference to the quality of the member outcomes from the schemes.”