Saving with group or individual personal pension schemes: How much difference does it make?

Ania Zalewska

Research output: Contribution to journalArticlepeer-review

115 Downloads (Pure)


The quality of services provided by institutional investors has attracted considerable attention. This paper adds to the debate by showing that institutional differences in setting up defined contribution personal schemes have an economically and statistically significant impact on the returns. Using a sample of 10,326 UK defined contribution personal pension funds over July 1990-June 2019, I show that pension funds that have a third party involved in contract setting and subsequent oversight deliver 0.96%-1.67% higher gross returns and charge 0.7% lower fees than pension funds offered directly to the public without any well-informed third party involved. I also show that the introduction of additional governance bodies in 2015 resulted in a widening of the performance gap, which further supports the notion that investment governance has a material impact on fund performance. The results highlight the importance of investment oversight and call for more protection for individual investors.

Original languageEnglish
Pages (from-to)5384-5402
Number of pages19
JournalManagement Science
Issue number7
Early online date27 Aug 2021
Publication statusPublished - 31 Jul 2022


  • benchmarks
  • defined contributions
  • governance
  • individual investors
  • pension funds
  • performance

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research


Dive into the research topics of 'Saving with group or individual personal pension schemes: How much difference does it make?'. Together they form a unique fingerprint.

Cite this