 |
|
 |  |  |  |
Maria Nazarova-Doyle, Head of DC Investment Consulting at JLT Employee Benefits comments on the first round of increased pensions contributions under auto enrolment. |
“Enforcing greater pension contributions will not be the panacea the Government hopes it will be. Whilst greater retirement savings are to be universally encouraged, the benefits of the increase will be eroded significantly if it is not accompanied by a review of the default investment strategy of a DC pension scheme. “Our research indicates that the losses incurred from being in a poor-quality default fund negates much of the progress made by increasing contributions for a saver starting from scratch. The projected value of savings for a 22-year-old starting to save into a pension with 5% contributions using a poor-quality default fund is almost identical at age 55 if that person continued on the current 2% contributions and chose the best available default fund. “If scheme trustees and sponsors could take care to choose an appropriate, best performing investment arrangement, the outcomes for savers could be exactly the same without having to reduce their take home pay. The importance of choosing a good quality default strategy cannot be overestimated. “When auto escalation is implemented for schemes with strong investment governance arrangements, the combined effect of increased contributions and increased investment returns can create truly impressive results.”
The table below helps illustrate this: |
|
|
|
| BPA Pricing Lead | ||
| South East, Hybrid - Negotiable | ||
| Valuation Actuary - Remote | ||
| UK, Remote - Negotiable | ||
| Life-changing Pensions | ||
| London - Negotiable | ||
| Investment Specialist | ||
| South East - Negotiable | ||
| Portfolio Pricing Actuary – First Act... | ||
| London - £100,000 Per Annum | ||
| Commercial Longevity Actuary | ||
| London / hybrid 2 days p/w office-based - Negotiable | ||
| STAR EXCLUSIVE: Actuarial modelling m... | ||
| London/hybrid 2-3dpw office-based - Negotiable | ||
| Data Engineering Manager | ||
| London / hybrid 2 dpm office-based - Negotiable | ||
| Principal Actuary - Bermuda | ||
| Bermuda - Negotiable | ||
| Director - Financial Performance | ||
| London/hybrid 2-3dpw office-based - Negotiable | ||
| Senior Actuary - Broker | ||
| London - £180,000 Per Annum | ||
| Director/Partner - Trustee Pensions | ||
| Flex / hybrid 2 days p/w office-based - Negotiable | ||
| hx Contractor | ||
| London/Remote - Negotiable | ||
| BPA Director - Origination | ||
| London / hybrid 2-3 dpw office-based - Negotiable | ||
| Senior GI Actuarial Analyst | ||
| South East / hybrid 2 dpw in the office - Negotiable | ||
| Nearly/Newly | ||
| London - Negotiable | ||
| Life actuarial analyst opportunities | ||
| South East / hybrid 1 dpw office-based - Negotiable | ||
| Life Actuary - Financial Reporting | ||
| South East / hybrid 1 dpw office-based - Negotiable | ||
| EXCLUSIVE: Corporate Pensions Consultant | ||
| Flex / hybrid - Negotiable | ||
| DB Pensions Actuarial Assistant Manager | ||
| Flex / hybrid 2 days p/w office-based - Negotiable | ||
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.
Copyright © 2025 Actuarial Post. Created by Zero-One Design Ltd
