Auto-enrolment will to some extent result in greater risk averse investment strategies according to 39.2 per cent of UK pension professionals, while 19.6 per cent believe it will definitely have an impact, a poll by Baring Asset Management has found. Only 2.2 per cent said that it will definitely not have an impact.

The Department for Work and Pensions (DWP) has estimated that auto-enrolment will result in extra contributions of £9bn annually from 2020, but as most of this money will come from low to moderate earners who are unlikely to have saved in a pension before, they are therefore likely to be more risk averse.

Furthermore, pension professionals expect auto-enrolment will also increase communication between schemes and their stakeholders, with 73.9 per cent saying that more regular meetings would definitely or probably be needed between trustees of DC schemes and their advisers. Additionally, 87 per cent of the 85 investment managers questioned felt more should be done to inform DC members about their investment options.

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