We surveyed defined-contribution plan participants in eight countries to determine what drives their satisfaction.
The findings suggest that the more we can help people understand how well prepared they are for retirement or how they can get on track the more optimistic they become.
What can younger retirement savers learn from those further along their retirement journey? And what can evolving DC systems discover from the successes and challenges of more mature markets? Our latest global participant survey — Global Retirement Reality Report — provides some leads. We present an exclusive preview here.
In the spirit of “global perspectives, local delivery” we fielded an eight-country survey to enrich our understanding of the practices and solutions driving participant satisfaction across different markets. With the consumer at the center of everything we do, we structured the survey to follow the journey from early saver to later retiree, in markets at different points along the Defined Contribution (DC) spectrum, from early to mature. We believe governments, regulators and employers can benefit from considering savings solutions by segment, an approach that could ultimately help address the dimension that remains unresolved in so many markets: income in retirement.
Older, Wiser and More Confident
The survey results showed that people generally feel more confident about retirement as they get older, a trend replicated across the range of countries surveyed (see chart below).
The closer to retirement they get, the more likely it becomes that people are more aware of their options, have assessed their likely retirement spending needs against their savings, and are more equipped as they attempt to “solve” the retirement problem. For younger savers, typically less engaged with their retirement plan, the information gap, perhaps unsurprisingly, can act as a drag on confidence.