XPS Group has launched a new tracker to benchmark a typical defined contribution pension pot at retirement against industry living standards.
The ‘DC: UK Savings Watch’ tracker maps the value of a typical DC pension pot at retirement against the Pension and Lifetime Savings Association’s minimum, moderate and comfortable lifestyles in retirement.
Updated daily, the tracker provides insight on a typical member and how their projected pension pot changes over time, based on a variety of factors including market dynamics and inflation expectations.
Mark Searle, head of DC Investment at XPS Group, said: “The second phase of the pension review was a real opportunity to put in place long term plans to improve retirement prospects for generations to come. Recent press speculation has indicated that this has been put on hold.
“It’s disappointing that the government is no longer prioritising the adequacy problem, so the solution necessarily lies with trustees, employers and individuals themselves.”
Searle said that the tracker not only models a typical DC pension pot, it can also model scheme specific data to help employers and trustees understand the savings targets their members need for a secure retirement.
Searle added: “By aligning projected pension pot values with recognised industry living standards, we aim to empower employers and trustees to support their members and provide clearer insights on retirement adequacy.
“We know the importance of planning for a future that aligns with financial goals, so we’re excited to launch XPS DC:UK Savings Watch as a practical way to help employers and trustees identify the gap between retirement aspirations and realities. Early intervention through changes to the investment strategy and / or contribution levels can then be discussed to move members to a more secure retirement.”
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