Growth in UK defined contributions slows

The swing from final salary to defined contribution pension schemes has been slowing in the past year, according to the annual survey of investment arrangements by UK fund manager Phillips & Drew.

The most likely cause for the slowdown in the growth of defined contributions is the pending introduction of stakeholder pensions. Many employers have put scheme design decisions on hold during the UK government's long process of finalising its low-cost stakeholder initiative, said Phillips & Drew.

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