With Royal Assent of the Pension Schemes Bill expected by the end of 2020, Collective Money Purchase – commonly known as Collective Defined Contribution (CDC) – schemes will become a reality.
Divestment or engagement – is it really either/or?
Screening is a widely used form of ethical investment but it’s not immune to pitfalls. Company engagement can also be used to help align investment with investor values. Here we take a closer look at each of these approaches and consider how they can work together to build portfolios that not only mitigate risks and generate good financial performance, but also, ultimately, have a positive impact on society and the world around us.
People are not engaged with pensions and saving has become something of a dirty word in the ‘lower for longer’ environment that followed the financial crash of 2008.
Clear measurable objectives are needed in the fight for better DC outcomes
Pensions adequacy for Defined Contribution (DC) members saving for retirement continues to be a major issue despite industry developments in recent years. A Master Trust is often seen as a simple, all-in-one solution to DC pension provision, with scale and independent governance seen as key to delivering a better outcome for members. However, choosing the right Master Trust is hard, not only due to subtle differences between them, but largely as delayed gratification makes it unclear whether the ’right’ choice has been made until members retire.
