Venture capital investment could buoy UK DC plans
A new member of a defined contribution scheme in the UK could enjoy as much as a 12% boost to their retirement savings, should their scheme up its investment allocation in alternative investments, a new report has found. Increasing the backing defined contributions give to venture capital and growth equity could also buoy the savings of older employees by as much as 10%.
Defined contribution pension scheme savers are missing out on higher returns due to a lack of investment in venture capital and growth equity funds, research from consulting firm Oliver Wyman has found. Such schemes’ lack of investment in these areas means that savers are missing out on opportunities for better returns; however, this can be overcome with improvement in being able to access these alternative asset classes.