How to analyse workplace pension default funds

by Patrick Norwood, Richard Hulbert and Jason Baran
Insight Consultants

May 2019

With many workplace pension providers stating that over 9 out of 10 members use the default fund, this CPD accredited guide provides an overview of key factors advisers should be aware of, understand and consider when reviewing default funds.

Since auto-enrolment started in 2012, over 1.4 million employers have been required to set up saving schemes for over 10 million employees. While existing employers have schemes in place, there are an estimated 175,000 new employers needing to set up schemes every year.

Download this guide to learn how to:

• Identify where improvements in employee benefit packages are available
• Compare providers’ default investment strategies
• Identify the main differentiating factors between default funds

All workplace pension providers known to Defaqto were asked to contribute to the study, resulting in one of the most comprehensive assessments of workplace pensions ever published.

Our analysis identifies a number of key areas to consider when reviewing default funds:

1. Governance and regulation
2. Provider financial strength and/or capability
3. IGCs, trustees and investment committees
4. Investment management key factors
5. Cost
6. Investment and performance
7. Benchmarking and evidencing ‘value for money’

The document is accredited by the CII/PFS and CISI for up to 60 minutes of structured CPD.