A good DC investment framework should make it easy for members to follow a simple process that results in a tailored, sophisticated investment strategy which meets their needs.

We believe employers should make use of all available tools in order to deliver the journey members are looking for.

Our defined contribution (DC) investment philosophy is supported by our Investment team of over 90 professionals who undertake manager and fund analysis as well as asset risk and lifestyle modelling. Together we have designed DC investment solutions that focus on two distinct phases:

  1. Passively engaged, when members are many years from retirement they need their money to work as hard as possible for them and they can afford to take a long-term view of investment success.
  2. Actively engaged, we believe it is currently at around age 50-55 that a DC investment strategy should move to reflect an individual's specific circumstances.

What is a DC-defined contribution?

A defined contribution (DC) retirement plan is a tax-deferred investment vehicle. Employees regularly contribute a set amount or a percentage of their income to an account aimed at financing their retirement years. A DC-defined contribution doesn’t have any specific promises to the amount of benefit. 

What are the benefits of a DC pension scheme? 

Contributing to a pension is a tax-efficient method of saving for retirement. Pension contributions automatically receive a basic rate tax relief added to the contribution, therefore enhancing the savings.

Monitoring and ongoing governance

We assist DC schemes in complying with all formal governance requirements. This could include putting in place robust monitoring and performance reporting, covering:

  • fund performance
  • key manager events
  • market review
  • market outlook

Engagement and at retirement support

It is important for employers to have a strategy in place, not just around how to support those approaching retirement, but all DC members. Support and guidance is needed at each life stage and we can help with the key messaging and design through our digital engagement and benefits platform, 4me.

Our investment services oversee more than 450 clients with over £140 billion in assets collectively. We work collaboratively to reach an investment approach that benefits and protects scheme members.

"Investment performance (net of investment charges) is one of the most critical factors in the ultimate outcome for the member, especially considering the low levels of contributions typically put into DC plans"
Mark Futcher Partner, Barnett Waddingham

DC consulting services

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