Almost two years on from the original announcement about the freedom and choice for defined contribution pension schemes, it is concerning that this research points to 23% of organisations not having changed their investment funds to reflect these wider choices.

Those in the 'old' default strategy may have their pension invested in a way that is unsuitable if they do not intend to use their entire pension to buy an annuity at retirement. 

From the statistics to date on retiree behaviour since April 2015, all of the wider choices are being used and there has been a significant drop in retirees using their pension to only buy an annuity. 

This means that those whose pensions are invested in 'old' default funds need to understand the pension reforms and review whether the default is still the right place for their pension to be invested.

Financial education can help members with this and can help companies and trustees to support their members in making good, well-informed decisions with their pension, in the 10-15 years ahead of retirement as well as at retirement.