By Rob Starr, Content Manager, Big4.com
Peter McDonald, pensions partner at PwC recently commented on the launch of the OFT study to examine whether defined contribution workplace pension schemes are set up to deliver the best value for money for savers.
“Despite the merits of this study, the timing could be a little premature as auto enrolment is still in its early stages. The extent of competition and best practice will only become clear once more companies are on board from April onwards. A review further down the line could be more accurate and revealing.”
He also said that it was right that the OFT study is looking at this issue. Auto enrolment will bring substantially more people into workplace pension schemes he added saying that much of the success of the scheme will depend on whether people feel they are getting the most value for their savings.
“Employers have a key role to play and too many are not as informed as they could be about how their pension scheme performs in terms of charges and other aspects. Employers need to take responsibility for regular reviews to ensure their pension scheme charges are providing the best outcomes for employees.”