Global Pensions Update: The Future of Retirement
How will macro events impact the retirement crisis?
If demographics are destiny, then a number of key economies are in big trouble. The number of people living longer has increased over the past few decades, putting more pressure on pension plans to deliver for a growing pool of retirees. This dynamic can also act as a drag on economic growth if overall workforce productivity declines. The macro events of the past two years highlighted even more the big question mark that hangs over the future of retirement.
To obtain a general indication of pension plan performance in various countries, WTW has created a benchmark pension fund that represents the typical plan in each market.
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Given the macro uncertainties which surfaced throughout 2022 (high inflation, increased interest rates, etc.), how are U.S. pension plans positioned going forward?
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The biggest question for managers of retirement plans is whether central bank policy will be effective in containing inflation in 2023 or not.
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Looking at a dataset of 100,000 401(k) participants, only c. 5% of participants who are age 55 currently have enough savings to delay claiming Social Security benefits to age 70.
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The analysis presented in this paper poses a specific challenge to pension providers: how will their decumulation solution manage sequencing risk?
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This survey shows, among other things, that rising funding levels present a number of opportunities for scheme sponsors and trustees.
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This piece highlights some key issues for superannuation fund providers, including recent regulatory reform and the impact of digitalisation.
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Among the key findings in this report is that, in the last year, the UK DC market has been subject to further concentration of schemes.
Funds which invested more in mortgages prior to the Global Financial Crisis experienced larger reductions in the funding ratio, this study finds.
By: Anton Balint, Senior Investment Writer