Half of DC schemes actively signposting to their full range of retirement options

Almost half (49 per cent) of DC schemes are now actively signposting to their full range of retirement options, a survey from Sackers has revealed.

The survey of 64 trustees and employers of both DC and DB schemes with AVCs, also found that 6 per cent of those surveyed are in the process of implementing signposting members and a further 8 per cent are considering it.

Sackers partner, Helen Ball, acknowledged that whilst there is still some way to go, “if we had asked that question three or four years ago this would have been a much smaller number”.

The survey also revealed that, of the schemes that still to signpost, 15.5 per cent are considering signposting and only 11 per cent have decided not to do it at all.

Ball expressed hope that those schemes currently considering signposting, will "start to favour action", leading to a "much more sophisticated DC pensions landscape taking shape – the future could look very positive".

Ball also commented: “Navigating multiple retirement choices can be risky and extremely overwhelming, most are not adequately equipped or supported to make the informed decisions they need to make for them and their circumstances.

“Recent stronger nudge legislation is a significant first step forward, and dashboards, engagement season, simpler statements and investment pathways are also a step in the right direction, but this does not target those that are disengaged or confused.

“With a growing DC population and many people relying on only DC benefits in the future, the DC debate is now moving on to look at the transition from growing pension savings into turning those savings into income."

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