Is your DC pension scheme resilient for the challenges of 2024?

2023 was a challenging year for the UK’s defined contribution (DC) pension schemes – and there is little sign of conditions easing during a period of economic, regulatory and geopolitical upheaval.
Given this backdrop and as we look at this year, it’s time to consider the resiliency of your scheme and members to navigate what we expect is on the horizon. We think these are the four core themes for the year ahead:
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Govern or consolidate
DC schemes face a continuing deluge of regulations and initiatives that ratchet up the governance load. Delegating some or all of the DC governance responsibilities may be appropriate to consider. -
Inflation hits home
Despite its downward trajectory, heightened inflation (as well as increased volatility) affects DC pensions and associated benefits across the board — from members’ financial wellbeing to potential retirement outcomes. -
Member outcomes
Helping members understand what their finances are likely to look like in retirement. -
Sustainability
Pressure (from a number of sources) to take action on environmental, social and governance issues continues to intensify. Has your scheme determined what’s most appropriate for your membership?
At Mercer, we use data from our own assessments such as DC MOT and RITE (Responsible Investment Total Evaluation) as well as authoritative external sources to generate insights and recommend actions that help you and your members.
We want this to be an easy read so we’ve kept it brief. Please get in touch if you would like to discuss any of our ideas or findings in more detail.