The move represents a shift in direction for the pension fund, which has focused on outsourcing for alternative or non-mainstream strategies rather than plain vanilla investments in recent years, according to a portfolio manager in Hong Kong.
In 2020, membership reached 23 million for DC schemes, compared with 22.4 million members at the end of 2019.
At one point Liberty Sipp traded well, with a turnover of £2.9m and a profit of £371,000 recorded in the year ended 31 March 2018.
Employer contributions also fell, although not by as much, with DC payments reducing from £3,941m to £3,748m, while DB payments moved in the other direction, rising by 10% from £6,675m to £7,341m.
Members are industry-wide and represent firms including Nest, Border to Coast Pension Partnership, Willis Towers Watson, BlackRock, State Street Global Advisors, and Sackers.
The pathways, meanwhile, will not look at an individual’s full personal circumstances and attitude to investment risk, with no ‘personal recommendation’ of which pathway to choose.
Here, rather than using your pension pot to buy an annuity, you keep your pension funds invested while drawing down an income which you can vary at any time.