Firms 'giving reassurance over DC pensions'
Providers of defined contribution (DC) pension schemes are attempting to reassure consumers in the light of ongoing stock market volatility.
This is according to Fidelity International, which has recorded a 20 per cent rise in calls handled by its Pension Service Centre phone team, as well as increases in visits to the educational pages of its website.
The firm suggested that providers of such schemes should take advantage of the rise in consumer interest and build more long-term communications to make sure members of DC pensions remain engaged with their post-work finances, people saving for retirement may wish to note.
Commenting on the issue, Colin Williams, executive director of DC business at Fidelity International, said: "The current financial crisis highlights the value of communication to members."
Available in the form of both company and private pensions, DC schemes involve risks in that if workers fail to increase contribution rates when investment returns are poor or costs rise, then their retirement income will be lower than they had planned for.
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