Today, many countries moving from a traditional Defined Benefit (DB) structure to a Defined Contribution (DC) model are experiencing transformational retirement reforms that are introducing confusion and doubt to savers; confusion about how the new systems work and doubt as to whether they do. While the systems themselves may be strong and the reforms directed toward public good, savers’ uncertainty erodes this critical dimension of trust.
Beyond believing that the system works, workers must understand and embrace their role within it to truly gain the value that savings structures have to offer. Here, we are defining ownership of the retirement readiness experience not as investment mastery, but instead, as a willingness to be present and engaged in one’s retirement planning.
Within the GR3 survey, we asked a range of questions to ascertain attitudes regarding ownership, and distilled the results into three themes: responsibility, choice and advice.
Responsibility is the governing indicator for ownership and most evident in countries where the DC construct is well-established.