It is well known that many people will rely on their pension to provide an income once retirement is taken. This means that getting investment choices right from the start plays a vital role in the possible return on investment.
However, DC savers who have been auto-enrolled are not always aware how their money is being invested. This puts pressure on the pension fund managers to ensure they are investing in the most appropriate and well governed funds, in order to deliver the required level of growth over a long period of time.
Getting the best investment option
Innovation is a key word for master trust providers such as ourselves, but there has been discussion regarding reducing the current charge cap from 0.75bps down to 0.50bps.
This would have a damaging effect on the market place and could reduce the sector to a ‘bland’ market, in which all major providers would just offer the same member outcome.
This is because a reduction in the charge cap would essentially squeeze investment out of the equation, meaning that new and innovative investments would cease to be an option. It is important that employers look beyond just the reduction in cost but rather focus on providing their staff with the best possible outcomes.
The current charge cap provides schemes with a clear structure to work within and enables the ability to construct some great investment solutions that are both diverse, innovative and offer a degree of variety to maximise the best possible return in later life.
At BlueSky, we offer two innovative pension schemes which fall under the 75bps charge cap; The BlueSky Pension scheme and Crystal. To find out more about the schemes and to watch our Chief Executive Paul Bannister discuss the charge cap in more detail, watch our latest video below.
To learn more about how BlueSky can assist you, or to speak with a member of our expert team, get in touch today. Call us on 01322 308 249 or get in touch via our contact page.