A defined contribution scheme’s default investment option is the most important decision for trustees to get right. It not only affects the most members, it is also the investment choice for which trustees bear the greatest fiduciary responsibility.

The challenges it faces are complex. It must invest over many years, in multiple asset classes and manage risks in relation to a long-dated and uncertain liability. But, apart from reducing investment risk as retirement approaches, lifestyle default funds tend not to address these complexities.