The Trustee Board for The Mitchells & Butlers Pension Scheme, on which Naomi L’Estrange sits as an independent trustee, has announced that they are updating their defined contribution default strategy to target drawdown. Previously, the default strategy for members was aimed at an annuity purchase at retirement.
In a further move to support members at retirement, the Trustee will also direct members to Legal & General’s master trust to access their drawdown, whilst also noting that alternative providers are available.
The change has been made after the Trustee’s research suggested that drawdown is the most likely method for members to access their pension pot. However, members still have the flexibility to choose an annuity or cash pathway if they wish. The new default also now uses a target date structure which means the way members’ pension savings are invested in aligned with the actual date they plan to access them.
We are thrilled to be part of a Trustee Board that is taking such an active role in ensuring the best outcomes for its members.
You can read more about the steps the Trustee has taken, as well as how they’re using technology to engage its membership here.