Feature


DC: NO TIME TO RETIRE


The crisis in gilt markets made national headlines following the government’s mini budget in the final days of September. This left members of defined benefit (DB) schemes worried, rightly or wrongly, that their pension might be at risk. Yet one aspect that has received little attention is the impact that the plunge in gilt markets is having on members of defined contri- bution (DC) schemes, especially those who are due to retire. With the burden of disappointing investment returns being shifted onto members, few seem to care that those returns can vary considerably and workers planning to retire imminently


26 November 2022 portfolio institutional roundtable: Defined contribution


might be left with less money to fund their twilight years than previously anticipated. The question is, how are DC members navigating volatility in bond markets to prepare for an uncertain future?


Lifecycle


Decumulation, the cornerstone of most pension investment strategies tends to be based on adjusting the investment strat- egy to the lifecycle of the scheme member. The default funds for younger members tend to be invested in growth assets,


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