Rise of DC poses risks and challenges for future pensioners

Increasing reliance on defined contribution savings means the requirements of future pensioners will be markedly different from those of previous generations, placing a greater emphasis on the need for communication and support, as well as on the role of annuities, a report from the Pensions Policy Institute has revealed.

The report, published on September 8, explained that increasing reliance on DC pots as opposed to older defined benefit schemes results in “more complex” retirement finances that future pensioners will have to manage, and that these will require more active engagement and will carry more risks.

DB schemes have fallen out of […]

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