Barnett Waddingham and MBWL International will collaborate with the Organization for Economic Co-Operation and Development (OECD) on its current research into ‘How to address hardship in retirement’.
A global research on retirement hardship is being conducted by the OECD. It intends to establish a framework for policy for defined contribution pension systems that will address the low rates of retirement saving in various socioeconomic categories and occupations around the world.
It will take into account what level of money will allow people in various socioeconomic levels to live long lives. A framework for implementing some of the key points of the OECD Recommendation for the Good Design of Defined Contribution Pension Plans will be developed through this project. With the aid of this framework, policymakers will be able to guarantee that most individuals receive the retirement income they need and stay out of debt. The OECD will publish the study’s findings together with policy recommendations and best practices in 2023.
Paul Leandro, Partner at BW, said: “It is a well-known problem that many people are entering retirement without the adequate savings and retirement income. The OECD is renowned across the globe for its data collection and research, and its influence in many pension systems around the world. To be able to support its work and help aid pension reforms is of great importance to us a leading consultancy. Understanding differing international pension reform models and retirement income options will allow the study to best understand the trade-offs with regulation, product design and employer/employee engagement.
“Our role will be to supplement the OECD’s analysis with the views of international employers. We hope this will be an important factor in changing policy to benefit members at retirement.”
OECD head of the pension unit at the directorate for financial and enterprise affairs Pablo Antolin says: ”Our focus will be research into different approaches to address hardship in retirement. We will gather experiences from OECD and non-OECD countries as they attempt to improve provision and design of different asset-backed pension arrangements.
“We hope working with BW and MBWL will enable us to gather a wider spectrum of views and thus provide policy guidance.”
MBWL head of international consulting Isabel Coles says: “Although pensions issues have slightly different nuances from country to country, it is important to assess these through a global lens and gain invaluable views from employers across the world.
“There are many variables which will impact hardship in retirement. The study will evaluate the socio-economic factors which come into play and their implications for all stakeholders including employers and individuals worldwide. Understanding the different employment situations gives us the ability to champion change on a much wider scale.”