Survey: PLSA’s Annual Survey 2017
Key findings:
- Defined contribution (DC) schemes reported that 88 per cent of their main DC active members remain in default funds. This is despite members being offered an extensive choice of funds – the median number available was 14.
- Around a third of DC respondents described their investment strategy for the growth phase of their main scheme’s default fund as a passive tracker.
- Mean running costs reported by defined benefit (DB) schemes increased from £546 in 2016 to £612 in 2017.
- For DB schemes, the overall contribution rate rose to 33.6 per cent, mainly due to higher employer contributions. The mean employee contribution rate continued to be around six per cent.
The PLSA received responses from 176 of its members, with 135 DB schemes, 127 DC schemes, two master trusts and 26 members of Local Government Pension Schemes involved.
