EUROPE - There’s no way back from the shift to defined contribution pensions from defined benefits, according to Unilever pensions head
Speaking at the annual Fund Forum event in Monaco, Lambert said: But if the industry got it wrong then there could be a “major scandal”.
His words echoed earlier fears expressed at the meeting that DC returns could be the major factor facing the industry in the next five years.
He told delegates that all new pension schemes within Unilever were DC and not DB.
The asset management industry had to play its part, in terms of “behaving ourselves”, but realising that it was dealing with the key issue of providing retirement income to people.
He noted that people in some countries were suspicious of DC providers, who need to work to overcome the “mistrust”.
Europe, including the UK, would be best served by so-called lifestyle products that are simple and low cost, to avoid the potential matter of people under-saving because of poor asset allocation decisions.