MBWL, BW and OECD collaborate on tackling hardship in retirement

The OECD is conducting a global study on how to address hardship in retirement. It aims to define a policy framework for Defined Contribution pension systems that will address inadequate levels of retirement saving across diverse socio-economic groups and employments worldwide.

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.” 
 

Barnett Waddingham, a leading independent UK professional services consultancy and its international arm, 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’. 

It will consider what level of income will sustain individuals in different socio-economic groups through old age. The study will build a framework to implement some of the main messages contained in the OECD Recommendation for the Good Design of Defined Contribution Pension Plans. This framework will enable policy makers to ensure most people achieve their target retirement income and avoid hardship. Findings from the study alongside policy guidelines and good practices will be published by the OECD in 2023. 

Pablo Antolin, Head of the Pension Unit at the Directorate for Financial and Enterprise Affairs of the OECD, said: ”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.” 

Isabel Coles, Head of International Consulting at MBWL, said: “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 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.”