DC Program 2019
Over the last couple of decades, retirement systems around the world have been facing similar challenges as life expectancy increases and puts pressure on the sustainability of both public Pay-As-You-Go systems and traditional employer-sponsored Defined Benefit plans. Several countries have countered these challenges with a significantly increased emphasis on Defined Contribution (DC) private saving, giving rise to what we call the Defined Contribution (DC) generation: those who will rely on this form of private saving to fund their retirement. DC systems shift much of the risk and decision-making responsibility around retirement planning onto individuals. Many new DC savers are on lower and moderate incomes, or working in sectors with employment patterns that have traditionally made them hard for the pensions industry to reach. Lots have no prior experience of pensions or investment products. The design and detail of the policies, markets and products that underpin DC systems vary from country to country, and there is a lack of discussion around how well they are serving the full spectrum of savers.
This was the starting point for the inaugural Global Defined Contribution (DC) Forum. In June 2019, Nest Insight partnered with the International Centre for Pension Management (ICPM) and the Aspen Institute Financial Security Program (FSP) to deliver a two-day conference in Vancouver, Canada, bringing together leading experts from around the world to exchange knowledge and ideas on the major issues facing savers and best practice in responding to those issues.
So, what’s next? We will soon be announcing the date for the next DC Program to be held in Dublin, Ireland.