Lessons Learnt: Designing Whole of Life DC TDFs Based on Drawdown Fund Experience

28 July 2023

7 min read

UK DC default investment solutions need to change. We think members’ default fund journey should in future extend from their accumulation phase through their decumulation phase. What design changes does that entail in practical terms?

Good default fund design based on practical experience is essential for both phases if DC savers are to achieve their retirement goals. At AB we have 14 years’ experience designing and managing TDFs for UK DC pension plan members’ accumulation savings. We also have eight years’ experience in managing their decumulation savings through our Retirement Bridge income drawdown fund range.

Retirement Bridge complements our TDFs and has paved the way for our new Whole of Life DC TDF range, which provides UK DC pension plan members with a seamless transition from accumulation to decumulation. Retirement Bridge has also provided valuable lessons for our Whole of Life TDFs’ design in three areas: Investment Design, Pay-Out Management and Communication, and Product Strategy.

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The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams. Views are subject to revision over time.

About the Author

This is a marketing communication. This information is provided by AllianceBernstein Limited, 60 London Wall, London, EC2M 5SJ. Registered in England, No. 2551144. AllianceBernstein Limited is authorised and regulated in the UK by the Financial Conduct Authority (FCA - Reference Number 147956). It is provided for informational purposes only and does not constitute investment advice or an invitation to purchase any security or other investment. The views and opinions expressed are based on our internal forecasts and should not be relied upon as an indication of future market performance. The value of investments in any of the Funds can go down as well as up and investors may not get back the full amount invested. Past performance does not guarantee future results. This information is directed at Professional Clients only and is not intended for public use.