for members

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The vast majority of DC pension plan members do not actively make investment decisions and prefer to see their contributions passed into a default investment strategy.

Pension legislation and regulation has increasingly recognised that: under automatic enrolment, members must not be required to make investment decisions and the Pensions Regulator has worked closely with the pensions industry to create guidelines for effective investment decision-making.

Finding the right

investment path

Recognising this, Atlas has a member-centric investment strategy, adopting a pragmatic approach to investment that reflects sensible risk management and recognises that although pensions are a long-term investment, they are, more accurately, a series of shorter-term investments. Members find it easier to engage with investment decisions over more manageable time-frames.

In developing this approach we have worked closely with our in-house data science team to analyse millions of decisions taken by existing pension plan members through the Orbit portal to develop a deep understanding of the demography and psychology of investment decision-making by DC pension scheme members. It has allowed us to understand the typical personas of DC plan members and build a range of investment strategies accordingly.

This combination of both the art and science of investment consulting has helped us to create a unique approach to solving the default investment strategy dilemma.

While the quickest path from A to B may be a straight line, life doesn’t always run quite so simply. Our available assets and our appetite for risk are influenced by a multitude of factors. Our flexible approach to default strategies reflects this and enables members to engage more easily by taking the journey step-by-step rather than demand they contemplate circumstances that are decades ahead.

Our innovative investment structure therefore breaks down the journey into a series of steps. At the end of each stage, members can continue along their initial default path or change direction in line with their changing lifestyle or needs.

Our default strategy splits the savings journey into 5 ‘life stages’, with three options in each stage as shown in the diagram below.

The choice of the core default strategy for members is based on the outcome of an employer specific member analysis, using our proprietary member analysis tool.

Members who do actively engage are not left alone to make decisions but have the benefit of pre-designed strategies to support them, if they so wish.

1

Get in gear

2 3

Cruise control

4

Get in lane

5Welcome to

your destination

Growth A Growth A

Structured glide path based on five stages

Growth C

Drawdown growth

Growth C Growth C

Accelerate

Growth B Annuity protection

Default path Member-driven path

Drawdown growth

Growth A

Cash

Growth B Growth B

For employers only. Capita Employee Benefits is a trading name of Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited. Part of Capita plc. www.capita.co.uk. Capita Employee Benefits Limited and Capita Employee Benefits (Consulting) Limited are registered in England & Wales No: 02260524 and 01860772 respectively. Registered Office: 17 Rochester Row, Westminster, London, SW1P 1QT. Separately authorised and regulated by the Financial Conduct Authority.