Manage cookies

How have DC defaults performed in the volatile markets of 2022?

Reward and Benefits Blog

Rocky roads

2022 has been a year like no other, with DC investors seeing double digit negative returns across both equities and bonds driven by continued geopolitical uncertainty and soaring interest rates.

­Our Q3 2022 DC Default Review paper looks at how some of the largest DC providers performed during this uncertain time, focusing on the impact on older members and possible actions to take.

In this paper we explore the impact 2022 has had on DC default investment strategies:

  • We compare the different provider off the shelf default returns, as well as suggestions of possible actions to take for older members.
  • Apply the 3 D’s of DC investing (don’t panic, diversify appropriately and dynamism) to older members.
  • Options both younger members in the growth phase of their investing and older members approaching retirement should be thinking about.