Anyone else think it odd that pensions advisers only seem to think that rising inflation is an issue for defined benefit schemes?
I think what they mean is that it is an issue for employers (ie their cleints) with DB scheme; employers don’t have to worry about their defined contribution (DC) schemes because the inflation problem is the employees’.
We can barely get most staff to even get the idea that it might be worth saving into a pension so no one really wants to hit them with the news that not only is the cost of living increasing, but also they are falling even further behind in saving enough for their pension if there is high inflation and no wage inflation to help their contributions keep pace.
So just saying, DC scheme members are impacted too – just no one really has a vested interest in talking about it.
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