IMA welcomes IGG pensions report

12 February 2010

An improved governance process will enable defined contribution (DC) pension scheme members to "navigate their way through the complex decisions they will face", according to one financial body.

This is the view of the Investment Management Association (IMA) following the publication of draft principles on governance laid out by the Investment Governance Group (IGG).

Richard Saunders, IMA chief executive, said: "Pension provision is moving rapidly towards DC, and the introduction of auto-enrolment from 2012 will give it a further fillip.

"The draft principles from the IGG DC sub-group are an important contribution to the promotion of good investment governance in DC provision, whatever the underlying delivery architecture. The IMA fully supports this process."

Fears surrounding the complexities involved in DC schemes could lead a number of members to take out additional measures to fund their retirements.

Policies such as equity release could allow homeowners to receive a financial boost through the value of their property assets.