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OECD report on default DC funds “misses the point”

The OECD has missed the point in calling for regulators to put a cap on the percentage of defined contribution pension schemes invested in risky assets according to an adviser.

The report from the OECD and Allianz Global Investors says that more attention should be paid to default options and investment choice including an equity ceiling to reduce losses in a market downturn.

But Richards Jacobs Pensions and Trustee Services director Richard Jacobs says the report does not address the root of the problems with default funds.

He says: “The OECD have identified a massive problem with default funds but all they are doing is substituting one model for another model.

“They need some form of active involvement from an IFA. The model is broken. There should be provision for workplace advice and talking to employees.”


Cash college

I have built up considerable amounts of cash. I would now like to invest sensibly in bonds and funds to ensure my children’s university fees are certain to be paid. Please also let me know what my tax position will be.

Flying lesson

Some of my extended family often remark that they envy me as I travel regularly in Europe and North America. Any of you who frequent airports regularly will understand me when I state that air travel is far from fun most of the time.


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