UK DC default investment solutions need to change. We think members’ default fund journey should in future extend from their accumulation phase through their decumulation phase. What design changes does that entail in practical terms?
Good default fund design based on practical experience is essential for both phases if DC savers are to achieve their retirement goals. At AB we have 14 years’ experience designing and managing TDFs for UK DC pension plan members’ accumulation savings. We also have eight years’ experience in managing their decumulation savings through our Retirement Bridge income drawdown fund range.
Retirement Bridge complements our TDFs and has paved the way for our new Whole of Life DC TDF range, which provides UK DC pension plan members with a seamless transition from accumulation to decumulation. Retirement Bridge has also provided valuable lessons for our Whole of Life TDFs’ design in three areas: Investment Design, Pay-Out Management and Communication, and Product Strategy.
