In the first episode of the fourth series of The Professional Investment podcast, James Monk, workplace director at Fidelity International, joins us to discuss how we can address pension inadequacy.
A recent report from Hymans Robertson provided this week’s news story which highlighted the variability in retirement income levels as well as the difficulty for individuals to manage their longevity risk.
The government announced the relaunch of the Pensions Commission this summer to address pension inadequacy but said no changes to contribution levels would be made before the next parliament.
That will put increased pressure on pension providers to maximise investment returns to provide the best possible old age. James and I discuss how default funds should be designed to achieve this outcome.
With the number of people relying on defined contribution pots to provide their retirement income growing, providers are grappling with the best designs to last the life of a pensioner.
We discuss how default funds need to deal with these different phases, the often contradictory challenges which need to be solved as well as managing the longevity risk highlighted in the Hymans Robertson report.
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