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Retirement Readiness

This international research examines individual’s expectations and preparations for retirement, across generations, genders, and three countries, Australia, United Kingdom, and United States. The report also proposes a number of recommendations to help individuals better prepare for retirement based on these results.

What you will get from this report:

  • An understanding of what people expect their quality of life to be in retirement
  • An understanding of how prepared individuals believe they are for retirement versus their projected outcome
  • An analysis of what should be done to mitigate these risks

Insight:

The significant shift from defined benefit (DB) to defined contribution (DC) arrangements means that employers are increasingly transferring retirement risk to employees unknowingly. This transfer of responsibility coupled with an ageing population led three actuarial associations (the Actuaries Institute of Australia, the Institute and Faculty of Actuaries in the United Kingdom, and the American Academy of Actuaries) to conduct a joint survey to see how prepared citizens in each country are for retirement.

The three associations determined that longevity risk was a major issue in each of their countries and prepared a White Paper, The Challenge of Longevity Risk, to alert the public and policymakers to our concerns. The Retirement Readiness Report summarises the results of the joint survey that we subsequently commissioned to investigate adequacy, the first of the five principles we identified in our report as necessary to addressing longevity risk.

Scope:

By using this approach, we could see if and how different cultural and historical practices and policies produced different preparations for and perceptions of retirement. This enabled us to identify those policies and practices that result in better or worse retirement planning.

Results:

Although our survey found that respondents are best prepared with respect to saving and acquiring information, respondents are least prepared with respect to:

  • Knowing how much they will need when they retire
  • Knowing how long their money will last
  • Preparing for longevity risk and social care

Based on these results, we have identified a number of recommendations to help citizens better prepare for retirement and determine what constitutes as adequate for their plans.  These recommendations include:

  • More targeted financial education
  • More default options, including for both accumulation and decumulation
  • Improving State Pensions adequacy and sustainability

Related documents

Contact Details

For further information on any of our public affairs or policy work please contact us on:

policy@actuaries.org.uk

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Events calendar

  • Asia Conference Webinar Series

    Webinars
    7 September 2020 - 25 September 2020

    Spaces available

    There will be a prestigious line-up of international speakers discussing the insurance and financial industry’s innovation and change in Asia.  The conference will take place throughout September via an online platform. The webinars consist of plenary speaking sessions and a series of workshop sessions including Life, GI, Data Science, Sustainability, Risk Management and Investment.

    This will be the perfect opportunity for you to discover,ask questions and be at the forefront of current and developing actuarial/financial topics and trends in Asia.

     

  • Spaces available

    12.00-13.00 GMT+8

    This presenter / panel workshop hybrid will be anchored by two presentations examining the socioeconomic, medical and technological factors that will have a significant impact on mortality and our pricing over the next 20 years and beyond. It will also discuss whether significant mortality improvement will continue in Asia or whether varying experience of low improvements or deterioration. 

  • Spaces available

    12.00-13.00 GMT+8

    This presentation aims to provides an overview of the reformation of current Chinese regulatory solvency regime, how industry coping with the new normal after pandemic time and how the reformation of the regulation could help the insurance industry gets back on its feet as well as coming back to the “protection” core value for the policyholders. The presentation would include:

  • Spaces available

    16.00-17.00 (GMT+8) | 09.00-10.00 (BST)

    The basic data of China’s 2nd Critical Illness Mortality Table covers 2000+ products in Chinese market, including about 340 million insurance policies and 5.1 million claimants. Presenter will give the audience a general understanding including but not limited to the following contents:

  • Autumn Lecture 2020: Professor Elroy Dimson

    Online webinar
    14 October 2020

    Spaces available

    Many individuals and institutions have a long-term focus, and invest funds for the benefit of future generations. Their strategy should reflect their long horizon. University endowments are one of the oldest classes of institutional investor, and I will present the first study of the management of these endowments over the very long term.

  • GIRO Conference 2020 Webinar Series

    Available to watch globally in November.
    02-13 November 2020
    Spaces available

    This year's GIRO has been re-designed as a virtual conference to offer members and non-members the opportunity to get up to date content from leading experts in the general insurance field via online webinars. All sessions will be recorded and made available to purchase and re-watch post-event on the IFoA's GI Online Learning Resource area.

  • Spaces available

    Cash-flow driven investing is a game-changer for DB pension funds navigating their end-game. Suitable for sponsors who want to reduce risks on their balance sheets. And for trustees, it shifts the focus to providing greater certainty of returns, managing funding level volatility and ensuring they have enough income to pay cash-flow requirements.

  • Spaces available

    The talk will provide an understanding of the priorities and relationships between deficit reduction contributions, in the context of wider scheme funding, and different types of value outflow from the employer based on the working party’s recently published report.