As Automatic Enrolment is designed to require no decision making by Workers, a Default Fund must be set. It is no longer simply a case of picking a managed fund and entering everyone into it and then forgetting all about it.
The default fund needs to reflect the demographics of the scheme. A Company full of young graduates will most likely have a different need from a more mature workforce consisting of Blue Collar staff. How would you assess which default fund is right for your staff?
Once the default fund has been chosen, another requirement is that the Employer must ensure the on-going suitability. Has the fund performed as expected? How has it reacted to changes in Markets and the Economy?
Campbell Thomson can help assess the workforce and put forward a suitable Default Fund.