Broadstone welcomes the fact that OFT will bring their consumer focus to the debate on good quality DC schemes which, until now, has been a rather insular debate within the pensions industry. DC schemes are clearly the future and so the pensions market must ensure it provides products that will offer the best value for individuals. One key question the OFT will be aiming to address is the ability of smaller employers to be able to achieve comparable results for their staff when compared to the bigger boys (the question of economy of scale with charges and investment governance being a major issue) and also receive the advice and support that the larger employers.
"The OFT should also consider factors other than charges, such as member engagement, financial education, retirement counselling and annuity advice to ensure that individuals get the best possible income when they retire.
"We believe that those employers can certainly receive bespoke and expert advice and support when they come to make their decisions around ensuring that their pension arrangements provide the biggest bang for the employer’s buck and provide the best possible deal for their employees."