Buzz: Trust-based DC failing to promote shopping around

clock • 1 min read

Trust-based defined contribution schemes are still not doing enough to help members shop around for the best annuity, say Buzz contributors.

Respondents said, by a margin of two to one, that  schemes were failing to adequately promote the open market option for retirees.

__________________________________________________

Question: Are trust-based DC schemes doing enough to encourage members to 'shop around' for an annuity?

p27-chart-3__________________________________________________

"It should be a matter of course that this is done but ignorance and complacency rule," said one contributor. "It is a swings and roundabouts situation for the providers but could mean several thousands of pounds difference to the pension payout."

But another respondent who thought schemes weren't doing enough was uneasy with the idea of forcing them to act.

"Why doesn't TPR or the FSA sponsor advertisements in the media advising the public to shop around?" they suggested

But a significant minority thought schemes were doing enough to help members, or were under no obligation to do more.

"A lot of trust based schemes shop for the member," explained a respondent. "Then they provide the information to allow members to review their enhanced annuity options."

Another contributor said: "Shopping around is just that: a decision by the individual to look at their options."

More on Defined Contribution

Partner Insight: Making private markets work for members – a guide for defined contribution trustees

Partner Insight: Making private markets work for members – a guide for defined contribution trustees

When capturing the potential that private markets could offer defined contribution schemes, trustees need to ensure they have absolute clarity on fees, fund structures and liquidity, says BlackRock’s James Rowe.

James Rowe - Managing Director, Head of UK Institutional DC
clock 13 April 2026 • 7 min read
SPP backs government changes to bring mandation powers more in line with Mansion House Accord

SPP backs government changes to bring mandation powers more in line with Mansion House Accord

Move follows Lords vote to remove reserve investment power from Pension Schemes Bill

Jonathan Stapleton
clock 08 April 2026 • 1 min read
Aon tracker shows uptick in DC retirement outcomes for Q4 2025

Aon tracker shows uptick in DC retirement outcomes for Q4 2025

Consultancy’s tracker rose from 71.3 to 73.4 over the final three months of 2025

Martin Richmond
clock 08 April 2026 • 3 min read
Trustpilot