Defined Contribution and Savings Survey 2022
Organisations have faced many challenges with the Covid-19 pandemic in the last two years, and we can expect them to face many more, as the economy reacts to global economic challenges and cost of living pressures. But what does this mean for the road ahead in a defined contribution context?
This survey from Willis Towers Watson reveals the immediate focus for organisations and the priorities they have set themselves over the near term:
1. Employee experience and financial wellbeing
Within the next two years, 83% of organisations are intending to enhance communication and support around financial wellbeing while 82% are looking to improve the employee experience. Improving member outcomes still remains high on the agenda though, with 57% citing this as a major priority.
2. Plan design
Looking beyond the FTSE 350, those considering a move to master trust are even greater in number, suggesting a certain amount of ‘catching up’ for companies outside the FTSE, where the move to master trust has been slower.
3. Investment
There continues to be a strong emphasis on incorporating environmental, social and governance factors into the investment strategy, with 43% of plan sponsors already having this within their default and a further 13% intending to do so.
4. Retirement support
There is a strong desire to continue to support retirement outcomes for employees, with over half of respondents stating this is a key objective.
5. Governance
The reassuring element to the continued outsourcing of provision, be that through master trust or contract based, is that there is a recognition that this does not signal the end of a sponsors’ need to continue to monitor their provision, with 86% of FTSE 350 and 78% of other organisations in the survey having or planning to have a formal oversight framework.
In partnership with WTW
WTW is a leading global advisory, broking and solutions company.
