As the UK pensions industry prepares for ‘Pension Freedom Day’ on 6 April 2015 LCP’s second Defined Contribution (DC) Conference helped 200 DC scheme decision-makers gear up for the new era.
Minister of State for Pensions Steve Webb set the tone with his opening address, reflecting on the success of auto-enrolment. He did not foresee a massive rush of 55 year olds looking to cash in pension pots. He said: “There is nothing magic about 6 April. People are likely to take time to think things through.”
Mark Jackson, LCP partner and chair of the conference, said: “The conference was dedicated to understanding what’s coming, sharing ideas and solutions for the new DC era. There was a real appetite to do the best we can for DC savers, who will be faced with more decisions than ever before.
“The changes taking effect in April make DC pensions a great long-term savings vehicle. Employers want their workforce to benefit from this, but there was a clear message from delegates that DC schemes need to educate savers over the long term, and well before any guidance offered at the point of retirement under the new Pension Wise brand.”
The conference, held at The May Fair Hotel (Thursday 5 February), heard from a range of speakers from LCP’s DC practice on why DC pensions are better than ever before; case studies on recently implemented DC investment strategies that are fit for purpose beyond April 2015; post retirement solutions offered in the provider and third party administrator market; and communication strategies for the new DC era.
Behavioural economist, Paul Craven, speculated on how individuals may be influenced by biases when making decisions after Pension Freedom Day. Delegates also enjoyed a preview of LCP Horizon, a governance tool that will help trustees and employers understand their DC membership and target investment strategies and communications more effectively.