Helping Defined Contribution scheme members with investment choices

Defined Contribution scheme meembers find it hard to make investment decisions

Too much investment choice can overwhelm your employees.

Most Defined Contribution schemes offer an enormous range of investment options, despite research revealing that too much choice confuses members and leaves them feeling dissatisfied.

To help them, it’s a legal requirement to set up a default way of investing. Unless members actively decide otherwise, and only 5% do, their contributions are paid into the default fund. That makes it really important to choose a default that suits as many of your members, and their retirement plans, as possible.

How can First Actuarial help you put the right default fund in place?

The default funds that many Defined Contribution schemes have in place are no longer fit for purpose, as they were designed when members had to buy an annuity at retirement. The new pension freedoms give members more choices at retirement, and default funds need to be updated to support this.

We work with you to select the most appropriate default fund, and help keep it under review so it continues to meet your members’ needs. Most providers offer their own default funds, but these involve differing levels of risk and vary in the returns they aim for. We will help you understand the aims of each default fund, its past performance and how it works. This will help you select the best provider for your needs.

Get in touch

Need help with your investment options? Get in touch with us today.

Find out more about our Defined Contribution services

Download our Defined Contribution brochure.

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First Actuarial case studies

Hachette UK

Hachette UK, one of the UK’s largest publishing groups, turned to First Actuarial to help improve staff engagement with pensions.

“One of the things I like about First Actuarial is that they’re very responsive. You never have to chase them for anything. They’re pragmatic and cost-effective.”



The RSPB was determined to minimise the impact of its new defined contribution scheme on employees, and appointed First Actuarial to support the transition and select a provider with strong ethical values.

“I would definitely recommend working with First Actuarial. Their consultants went over and above the call of duty to make sure the project progressed smoothly.”


Bolton Cares

Taking responsibility for care services previously provided by a local authority, Bolton Cares turned to First Actuarial for help in setting up a competitive and affordable DC pension scheme for its staff.

“They’ve been really helpful and professional throughout the project, and we’ll use them again if we need specialist advice.”

See all our case studies
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