Pension fund members need extra support and a one-size fits all approach is no longer enough, according to experts from global insurer and risk manager, AON.

Attendees at the AON Pensions Conference in London last week heard that understanding members' diverse requirements following pensions reform is vital.

"Members will need to make the decisions themselves, but will probably come to funds and schemes for advice," said DC proposition leader at AON, Debbie Falvey.

Ms Falvey recommended enhanced telephone support and suggested that schemes consider independent advice arrangements to assist with members' enquiries.

"Members' requirements have changed a lot – 55 per cent of over 50s have had to change their retirement plan in the last five years and one size solution doesn't fit all anymore," she said.

Elsewhere at the conference, AON partner, pensions consulting, Jackie Daldorph explored the ways in which scheme trustees can become more efficient.

She said the top three reasons trustees struggle to make decisions are time, legislation and responsiveness.

"Can we look at new ways of doing things to simplify the process and give us more time?" she said.

"If we make changes now to simplify the way we work, then we should sail through IORP II, the EU directive, from December next year."

Attendees also heard how equity now represents a significant proportion of scheme's portfolios, down from 50 per cent in 1999 to 20 per cent in 2014.

Duncan Hewitt, AON principal, said pensions schemes are now buying into bonds and that equities are expensive in terms of the price to book, price to sales and the 12-month forward price.

He advised schemes to diversify.

"Diversified portfolios are better placed to cope with volatile markets – it's difficult to find absolute value but you can find relative values," he said.

Principal consultant Jenny Swift, who specialises in defined contribution schemes, said DC investment is becoming "increasingly complex".

She outlined the "DC investment cycle" advising that schemes must understand members and what they might do at retirement, design and implement a strategy and then monitor and manage outcomes.

"The 2014 redesigned the landscape with too much choice, lack of diversification, and high fees," she said.

First published 14.05.2015

Lindsay.sharman@wilmingtonplc.co.uk