Defined contribution (DC) pension schemes could improve returns for members without increasing risk by adding alternative assets to default funds, according to a new report from the Pensions Policy Institute (PPI) sponsored by the Association of Investment Companies (AIC).
Defined contribution (DC) pension schemes could improve returns for members without increasing risk by adding alternative assets to default funds, according to a new report from the Pensions Policy Institute (PPI) sponsored by the Association of Investment Companies (AIC).
The report suggests that pension savers with particular characteristics might benefit from the inclusion of alternatives, which could lead to enhanced returns, lower volatility, or a combination of both.
A broad range of savers could benefit, including people who work for longer and higher earners, those with patchy work and contribution patterns, people who stop contributing at younger ages, and those without supplementary savings.
