FRC research on UK Defined Contribution Pension Scheme Default Investment Strategies

Published: 26 July 2024

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This aim of this research project is to compile data on the default investment strategies currently offered by UK Defined Contribution (DC) pension schemes, noting that default DC investment strategies have evolved, particularly since ‘pension freedoms’ were introduced in 2015. The project’s output, and the Financial Reporting Council’s subsequent analysis of it, will support the FRC’s setting of actuarial standards appropriate for the current environment of UK DC pension schemes.

The research is being carried out on behalf of the FRC by IFF Research, our appointed research consultancy. It will address the following areas of enquiry:

  • The structure of default investment strategies.
  • Rationale for default strategies.
  • The form in which DC benefits are taken at retirement

On behalf of the FRC, IFF Research will survey a wide section of the UK DC pensions industry, including larger pension providers and employers that offer a DC pension. The survey’s coverage will include large trust-based schemes, master trusts, contract-based occupational pensions (such as group personal pensions and stakeholder pensions), and other pension arrangements.

Pension providers and relevant employers will be invited to take part in the survey, which will be carried out by phone at a date and time of each participant’s choosing. Pension providers can also volunteer to take part by emailing the IFF Research team at [email protected]

Any other queries can also be directed to the IFF Research team at the same email address.

Answers and information given by survey participants will remain confidential to the FRC/IFF Research and will be anonymised and aggregated if used in any form outside the FRC.