DC Pension Schemes: Improving Investment Returns
A provider herd mentality toward investments not only risks leaving employees with inadequate savings in their retirement, but also diminishes the value of the schemes as a tool for recruitment and retention in the present.
With principles in place like the Mansion House Compact (see below for more details), focused on diversifying investments to increase returns, there is an opportunity for plan sponsors to consider new investment options, such as private markets, alongside transitional assets like renewable energy and technology.
“There is enormous opportunity, but also risk, in investing in transitional assets as the economy moves away from fossil fuels,” says Aon’s Swift.
This commitment to integrating alternative…