The Default Investment Strategy (DIS) relates to which aspect of pension schemes?

The Default Investment Strategy (DIS) relates to which aspect of pension schemes?

• A. The maximum allowed investment in equities
• B. The default investment approach used by trustees
• C. The inflation index used for revaluation
• D. The governance structure of the scheme

Answer: (B)

The Default Investment Strategy is about the default path funds take for members who haven't chosen an investment option. It defines the conservative, diversified approach trustees use to invest members’ money by default, often with a glide path that gradually reduces risk as retirement approaches. This is especially important under auto-enrolment rules, ensuring a sensible, long-term default while still allowing members to opt for other choices. It isn’t about how much of the fund can be invested in equities, nor about how inflation is measured for revaluation, nor about the scheme’s governance structure.

The Default Investment Strategy is about the default path funds take for members who haven't chosen an investment option. It defines the conservative, diversified approach trustees use to invest members’ money by default, often with a glide path that gradually reduces risk as retirement approaches. This is especially important under auto-enrolment rules, ensuring a sensible, long-term default while still allowing members to opt for other choices. It isn’t about how much of the fund can be invested in equities, nor about how inflation is measured for revaluation, nor about the scheme’s governance structure.