Workplace Savings – Isio Blog 13

23 Apr 2021

Workplace Savings - An Isio Blog

Blog 13, April 2021

Who’s this for? Trustees, Pensions Managers and Governance Committees

There is a lot of focus on helping members save for retirement and understandably this is also in the providers’ interest. More needs to be done by employers/trustees, in conjunction with their providers, to support members in the approach to and in retirement.

As DC pension members get ski lifted up the retirement mountain, they have support from their employer/trustees, the government and their provider to build their savings. Once they reach the summit, they are on their own and have a decision to make:

With mountains getting trickier to navigate, members need to understand the routes and go at a pace to suit, often changing speed to react flexibly to the terrain. Members want to feel in control and understand the risks of going too fast or too slow. With the DC ski lifts getting busier, there will be more members approaching the top of the mountain and needing greater support.

The DC pensions industry expects all members to be expert skiers, knowing what they plan to do when they get to the summit, and how to do it when they get there. In practice, members need:

This is in line with the PLSA Decumulation Framework of minimum standards to help employers, trustees and providers address members’ decumulation needs.

At Isio we can act as your experienced mountain guide, supporting employers and trustees in assessing approaches to pre-retirement and decumulation support.

Tom Chalkley is DC Consultant at Isio. Contact Tom directly here.

DC retirees following their dreams...right off a cliff? PDF