Defined Contribution pensions are evolving and evolving fast. As a result employers are becoming more aware of the requirement to manage pension adequacy levels amongst their employees. Low adequacy levels can often lead to unforeseen costs where employers have to pay a high price to retire employees who otherwise cannot afford to leave. There is also the potential to develop promotional choke points, where older workers who would have retired in a defined benefit world continue to work for longer.
Improving member outcomes in retirement
At Mercer we have the knowledge and the expertise to guide our clients and their employees every step of the way. Our focus is on trying to improve member outcomes in retirement, meeting the retirement expectations of pension scheme members and managing the risk of disappointment. At Mercer we achieve this by working together with our clients to:
- Increase the number of people saving for retirement and the amounts they are saving for retirement
- Improve the quality of the investment solutions available to members of defined contribution schemes, including how risk is managed as retirement approaches
- Change the way pensions are communicated, tailoring communications to better meet the specific requirements of people at different stages on their retirement journey.
- Work with Government and legislators to simplify the existing DC pension system
It is not just in Ireland where DC pensions are changing. Globally DC is taking over as the primary form of retirement provision and Mercer’s global footprint allows us to bring the best ideas from around the DC world and implement them for our clients here in Ireland. As such, Mercer Aspire, our innovative new DC solution is leading the way in improving member outcomes in retirement.
Contact us to find out more about how Mercer can help you to manage the business and employee related issues associated with DC pension adequacy.