White paper: Automatic Enrolment Default Funds

JLT's white paper considers the possible returns employees might get from their automatic enrolment (AE) savings by looking at the in-house default funds of the ten largest Group Personal Pension providers.

Key findings:

• Defined Contribution (DC) schemes make up 97% of schemes used for AE, with 92% of all DC savers invested in a default strategy.
• Performance of the 10 funds analysed differ dramatically. Annualised performance ranged from c.6.3% to 12.5% with volatility varying between c.5.7% to 12.2%.
• "When it comes to providing benefits to their employees, choosing a good quality default fund for their DC pension is probably the most important decision an employer will ever make," states the paper.