Defined contribution structures have long been seen as the poor relation to defined benefit. People point to lower contribution rates and a lack of member engagement as key factors going against defined contribution pension plans.
However, the number of DC schemes continues to grow and we are getting to a point were the market is maturing and it is often the case that the only open pension plan on offer in many companies is now a defined contribution arrangement. As a result scheme sponsors are increasingly revisiting their DC plans and making improvements to contribution rates or the investment choice on offer. It’s fair to say that DC is now being taken more seriously. In this issue of DC World we held a round table discussing the changing perceptions of DC in the marketplace and we asked what the future holds for this fast evolving sector.
