DRAWDOWN ON PENSION HOW TO

Offering some managed objective based funds will provide the level of choice she needs.Īs Alison approaches retirement she thinks she probably will want to leave her money invested and use income drawdown. She feels Help me do it, but wants the choices to be simple. Stay up to date with new styles of investment options such as white labelling and target date funds which are growing in popularity.Īware Alison believes pensions are important and she will spend some time thinking about it.Consider whether to move to a mixed annuity/cash/drawdown model. 39% of schemes' default investment strategies are still targeting annuity, despite the rise of drawdown and cash under the Freedom and Choice agenda.One in 10 schemes have NOT reviewed their investment default in the last three years.Failure to do so means it’s likely that their needs are not going to be met. That’s why it’s so important to review the investment default regularly. In a typical scheme, disengaged Daniels and Debbies often make up about 90% of members. So for everything else it is up to you, the trustees or the scheme managers, to do your best for him. But that was it – at that point he had done his thinking about pensions and you weren't going to get any more focus. He signed up for the pension as part of auto-enrolment because he knew he should have a pension and did not want the hassle of opting-out. Pension Personality one:ĭisengaged Daniel will say 'Do It For Me'. In our new report, The Aon Defined Contribution DC Survey, we’ve identified three pension personalities that you need to know.

The first step is to understand who your members are, because we all know that good decisions are based on knowing exactly who your audience is. There are significant risks for sponsors and trustees to manage, but there are simple steps you can take to help to minimise these. But they can be challenging – and even scary – for members. Investments are a crucial part of a DC scheme.

DRAWDOWN ON PENSION HOW TO

Home > Retirement & Investment > Defined Contribution Pensions The three types of Pension Personality: and how to help them with Investing

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