How should we think about value for money?

There is rightly an increasing focus on value for money (VFM) in defined contribution (DC) schemes, referenced crucially in the annual statements from both IGC and trustee chairs, writes Julius Pursaill.

VFM in DC pensions may seem a simple concept - but there is no established  consensus around a definition and we are already seeing some widely differing views emerging around wherein value actually lies. Standard Life Investments, for example, has borrowed from the National Audit Office definition of VFM to argue that consistency of outcome between different cohorts of customers is a key component of value. This neatly underpins the use of diversified growth funds in the accumulation phase. Elsewhere, as required by the Pension Regulator, there has been a developing focus on collatin...