Editorial: Future glories
Many congratulations to all the winners of this year's 15th annual Pension and Investment Provider Awards, and thank you to all who came to the evening at the Sheraton Park Lane on May 21.
We've set out the winners and the judges' reasons, as you'll have seen, on pages 10-14. Online we've also blogged with the best tweets from the night and the best photos of the evening, so do have a look to see if you or your provider is featured.
How to provide something that is within the charges cap, but that still caters to the variety of retirement options open to workplace savers?
One of the things I was keen to stress in my remarks at the conference was my annual call to the industry to bring more innovation to bear in the defined contribution investment category.
Too often, products presented as innovations in the UK are simply reheated leftovers from the US. We should of course seek to imitate the best of what is offered overseas, but where are the strategies tailored to this country’s regulatory environment?
This year it seems I may be in luck. All the advice v guidance furore and the soul-searching following the Budget reforms has clearly kickstarted a spate of products intended to help DC members invest ‘to and through’ retirement.
Next year, when the judges sit down to pore over the entries, I hope they are rewarded for their efforts with a set of ideas that have responded to the central questions facing DC investment strategies in the UK.
Illustration by Ben Jennings
How to provide something that is within the charges cap, and in recognition of the overwhelming dominance of the default among member choices, but that still caters to the variety of retirement options open to workplace savers?
Another key question is the right amount of risk to be taken in that DC investment strategy. Will the Nest-driven consensus, for ‘smooth’ returns and reducing risk in the foundation stage to avoid losses that will disincentive saving, abide?
Or will providers decide that the traditional view of younger members being in higher-risk investments still makes sense, given the time they have to make up losses?
And will these strategies be easy to communicate? How can providers make sure they are understood by the average saver? I’m relieved I only have to ask the questions.
Ian Smith is editor of Pensions Expert. You can follow him on Twitter @iankmsmith and the team @pensions_expert.