Value for money in DC workplace pensions

Value for money in DC workplace pensions is a report sponsored by Standard Life. To date, regulators and other stakeholders have focused on charge structures, with less attention given to other elements that determine value, such as governance and communication. In turn, there have been discussions within the pensions industry around value for money. This report looks to expand the discussion to include other aspects of value for money by summarising existing research for the different factors, supplemented with PPI modelling results that explore the impact of investment, governance and individuals’ choices at retirement.

This report considers the definition of value for money in workplace pensions, including both contract and trust-based pensions, in order to inform the development of Defined Contribution (DC) workplace pension provision. It primarily considers value for money from the member’s perspective, although it recognises that pension schemes should also look to provide value to employers.  The report highlights that, while there is no single definition of value for money in pensions, there is consensus that value for money is about more than simply cost.

Chapter one considers definitions of value for money, including the issue of who determines value for money, and some of the challenges around assuring value for money. It goes on to provide an overview of the main characteristics that drive value for money.

Chapter two considers the role of each of these characteristics in more detail during the accumulation phase.

Chapter three explores the factors that contribute to value for money during decumulation.


To download the report, please click here.

To download the executive summary, please click here

For information on the press release, please click here.

For information on the event, please click here. 


Executive Summary