Legislation requires that all workplace pension schemes are required to offer a Default Investment for their members. By the very nature of individuals, one solution is not right for everyone and we believe in seeing each employee face-to-face, where possible, to give individual investment advice. We believe in this approach because it generates the best results and provides employees with an easy way for them to understand their choices.
We know this is beneficial to employees because understanding what asset types, and which individual funds, to invest money into is a daunting prospect filled with many risks. Our advice process starts with ascertaining the employee’s Attitude to Investment Risk and their Capacity for Loss, through our own bespoke software which is compiled and controlled by our Investment Committee. This leads to an asset allocation recommendation and then ‘low cost’ or ‘best of breed’ investment solutions that meet such recommendation.
By considering individuals in this way, we aim to improve future retirement positions through the investment of savings in funds which are not only recommended by our Investment Committee but which also suit the individual’s own personal profile.
To give a simple example of the impact improved investment returns can make, consider the following case and what a difference a small improvement can make:
Two pension savers invest £250 per month over 30 years. One achieves a return of 5%, giving a total fund at retirement of £169,600. The other saver secures a 2% per annum improvement in investment returns (to 7% p.a.). This 2% difference helps to boost the retirement savings of the second saver by 42% (around £70,000 extra). (This example is provided for illustrative purposes only).
We are, of course, independent from any investment provider, so we are able to provide a truly impartial investment advice service and select investment funds from a choice of thousands. All recommendations are reviewed by our in house Investment Committee.