LifeSight, WTW’s defined contribution (DC) master trust, has passed £1bn in drawdown assets as more members use the facility to manage their retirement income.
The fund, which oversees more than £24bn on behalf of 430,000 members, said 7,500 retirees had now transferred their pension pots into LifeSight’s flexible drawdown solution since it was launched. Members can take income while leaving the remainder invested for growth.
Jelena Croad, head of LifeSight UK, said retirement behaviours were shifting as the DC system matures.
“In the past, many of our members transferred their LifeSight DC pot back into their employer’s DB scheme and used it for their tax-free cash lump sum,” Croad said. “Over time, the number of members with legacy defined benefit [pensions] is falling and we’re seeing ‘generation DC’ start to retire.”
The milestone comes as policymakers push for clearer options at retirement. The Pension Schemes Bill requires DC schemes to offer members a default decumulation pathway, known as ‘guided retirement’.
Croad said LifeSight expects this to accelerate innovation. “The government’s new ‘guided retirement’ provisions are a positive step towards ensuring that all members have access to suitable retirement options,” she said.
“The industry is already making positive changes in this space, with options like guided drawdown and later life annuities coming to the fore. We expect decumulation collective DC to also be an attractive option.”
