Next decade of defined contributions crucial: Research
The Thinking Ahead Institute, which is based in London, said that retirement systems around the world are on the cusp of significant change.
Challenges the research identified when it comes to defined contributions include coverage, adequacy, technology, a lack of trust and a lack of engagement with participants.
The research argues that a new version of defined contributions is emerging, to be characterised by hyper-customisation and integrated whole-of-life wealth management.
“The system needs to move beyond its role as a tax-effective savings vehicle, and it also needs to become more customized to individuals’ circumstances, more cost-effective, better governed and more tech-savvy,” the Institute said.
Thinking Ahead Institute head of research Bob Collie said: “The need for change has been clear for a long time.”
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