18 Sep 2018

Survey: FTSE 350 DC Pension Scheme Survey 2018

This survey looks back at the defined contribution (DC) pension journey over the last 10 years, and also looks ahead to some new directions of travel. Willis Towers Watson sums up the current developments into three key areas: reacting to pension freedoms; reviewing the delivery vehicle and ensuring compliance; and a focus on member support and engagement.

Key findings

The majority (99 per cent) of FTSE 350 employers only offer new hires DC provision.
Over the past 10 years, FTSE 100 companies have increased contributions to DC arrangements four-fold, and average scheme funds under management have grown five-fold.
The use of Master Trusts has more than doubled from eight per cent of schemes in 2015 to 18 per cent of schemes in 2018.
Overall contribution rates have remained stable. For FTSE 100 companies with a matching design, the average maximum overall contribution rate is 16.8 per cent.
18 per cent of companies were found to have a financial wellbeing programme in place, while 35 per cent of firms plan to introduce one within the next three years. A third of companies were also considering introducing a workplace ISA.

This is the thirteenth edition of Willis Towers Watson’s FTSE DC Pension Scheme Survey, and the fourth to include the FTSE 350. It provides a clear representation of DC pension provision in the UK and is relevant to any employer with a DC pension arrangement.