www.iapf.ie Def Defaul ult Fund Fund versus versus In Inve vestm - - PDF document
www.iapf.ie Def Defaul ult Fund Fund versus versus In Inve vestm stment Choice Choice Jam James Skehan Skehan Head of Head of Pensions, Pensions, New New Ire Irelan and Assurance Assurance Di Director, ctor, Gener General In Inve
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Head Head of
Pensions, New New Ire Irelan and Assurance Assurance Di Director, ctor, Gener General In Inve vestm stment Trust Trust
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The member’s retirement fund depends on
Contributions paid Expenses paid Investment growth
employee contributions rates set by employer
pay AVCs
employer with scheme advisors/ providers
member
significant to eventual
involvement – if choice allowed and used
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provide:
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Requirement of legislation
Apart from ticking a compliance box does it serve any useful purpose ?
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What percentage of schemes use the following default strategies?
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What is the asset class distribution of the lifestyling growth portfolio?
At start of Lifestyling At NRA
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Of active members invested in a default fund IAPF Survey
the part of members?
investment choice?
members?
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Member engagement
‘Members have sufficient information to enable them to make an informed decision’
How is it achieved? Information tools
information
risk ratings
‐ performance/ asset splits
understandable
information
compliance requirement?
members interests?
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Crucial for younger members Increasingly irrelevant for older members
Early years ‐No real issue ‐Investment in equities /growth assets Need to “persuade”
the Default Fund
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Members of a group scheme are a collection of individuals
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By fund value By claim count
Source: New Ireland Assurance
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Scheme with 15 members aged 60 or older
Source: New Ireland Assurance
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– Lump Sum/ Pension / ARF?
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increases
– Younger members – Compliance