Aon research: 2024 DC Pension Scheme Survey
Aon’s DC Pension Scheme Survey – Five Steps to Better Workplace Pensions covers the key aspects of workplace pension provision.
It identifies five areas for focus to help deliver better outcomes for DC savers and employers: strategy and design; contributions and adequacy; investments; engagement and wider financial wellbeing; at retirement.
Key findings:
- Nearly half of respondents are considering changing the structure of their DC plan to aim to help deliver better outcomes and to reduce the governance burden of running a DC plan.
- The average default contribution rate remains at around 6% from the company and 4% from the employee. There is a wide range, however, between the highest and lowest rates across all schemes and between industry sectors.
- Eight in 10 monitor performance of individual funds against benchmarks, but only 3 in 10 monitor what this means in aggregate for a member invested in their default fund.
- Three-quarters provide wider financial wellbeing support outside of pensions, or plan to provide this in the next two years.
- Most DC schemes report that less than 10% of members have selected their own target retirement age, although 40% of schemes do not measure this.
