退職関連業界の未来： 長寿と年金問題への対応
In recent years, it has become increasingly evident that people around the globe are living longer than their ancestors. This remarkable shift can largely be attributed to advancements in the medical field, which have significantly improved health outcomes and life expectancy. However, this increase in longevity is accompanied by a notable decline in birth rates across many regions, creating a complex challenge for the retirement industry.
In countries where the government provides pensions for older people, the sustainability of these pension funds is becoming a pressing concern. The reduction in birth rates means fewer employees are entering the workforce to contribute to these pension schemes, placing an unsustainable burden on existing systems. As a result, governments are shifting the responsibility of retirement savings onto individuals, encouraging them to invest in personal retirement funds. This trend is reflected in the increasing pension ages observed in Western countries and ongoing pension reforms across various European nations.
The global shift towards defined contribution (DC) retirement schemes reflects a significant transformation in how individuals save for retirement, moving away from traditional defined benefit (DB) plans. Defined contribution schemes offer more flexibility and portability than DB plans, where employees and employers contribute to individual accounts invested over time. However, this shift also places the onus of investment risk and retirement adequacy on individuals, highlighting the importance of financial literacy and access to investment options. As countries adapt to this new paradigm, the challenge remains to ensure that workers are adequately prepared for retirement in an increasingly uncertain economic landscape.
One of the systemic issues facing the retirement landscape is the fragmented services offered by wealth managers, pension providers and financial advisors. Typically, pension schemes are managed by employers, insurance companies, and government entities. When different entities operate in silos, there is a reduced ability to create integrated products that combine investment, insurance, and retirement planning, which are essential for meeting diverse client needs.
A report that recently captured my attention is “Longevity Unlocked — Retiring In The Age Of Aging”, produced in collaboration with our parent company, Oliver Wyman, and Morgan Stanley. This report examines the asset and wealth management sectors, focusing on retirement solutions and market trends. It explores the changing landscape of asset management, the effects of demographic shifts, and the need for integrated retirement solutions that comprehensively address individual client needs. Key themes include the significance of strategic market engagement, the transition towards private markets, the challenges encountered by traditional asset managers, and the imperative for innovation in product offerings to meet the needs of an ageing population.
The retirement market offers a substantial opportunity for wealth and asset managers, fueled by rising life expectancy and the increasing responsibility for retirement planning shifting to individuals. The report projects that by 2028, this opportunity could generate an additional $400 billion in revenue for the industry. Key elements of this opportunity include the escalating demand for customised advice and retirement solutions and the expansion of product offerings to encompass private market investments and insurance products that address evolving client needs. Additionally, there is a focus on developing integrated and personalised retirement solutions while leveraging technology to enhance service delivery.
The retirement market varies significantly across countries, necessitating tailored strategies considering local pension systems and client needs. Our sister organisation, Mercer, along with the CFA Institute, published the latest global pension index, ‘Mercer CFA Institute Global Pension Index 2024’ This report evaluates pension systems worldwide, with the Netherlands, Iceland, Denmark, and Israel receiving high rankings for their robust frameworks.
As we navigate these changes, stakeholders in the retirement industry must adapt and innovate. By embracing new strategies and fostering collaboration between the wealth, asset management, insurance and pension sectors, we can create a more sustainable and equitable retirement landscape for future generations.