Defined contribution plans focus too much on the short-term accumulation of pension assets rather than the longer-term goal of securing an adequate retirement income.
This paper by the World Bank, based on case studies from a number of countries, argues that pension supervisors have not properly defined the objectives of DC pension systems
It suggests that in order to have a meaningful impact on future pensions, the supervision of DC systems needs to take a more proactive role in minimising pension risk.
This objective would require ensuring that investment risks are aligned with the probability of achieving a target pension at retirement age.
To access the paper click below
Leave a Comment
You must be logged in to post a comment.
Login