Global pension and retirement market outlook
We recently interviewed 50 public and private sector stakeholders, corporate pension and retirement organizations, and asset managers.
Collectively, these represent more than $10 trillion in assets under management (AUM). Several key observations emerged from the survey:
- The importance of social security, pension and retirement providers
- Gaps in pension governance, operational maturity, investment risk and operating models
- Challenges of increased stakeholder, regulatory and service provider scrutiny
- Technology and lower returns driving pension investment
Respondents’ diversity regarding assets, liabilities and stakeholders reveal varying levels of “exposure” to change. Drivers include asset growth, lower returns and increased market volatility, coupled with higher investment risk taking and global diversification in new markets and asset classes
Governments, regulators and boards must ask themselves one key question: Are our frameworks and capabilities commensurate and aligned to the new world and to our roles as fiduciaries for the financial and retirement well-being of millions?
Governments, regulators and boards must ask themselves one key question: Are our frameworks and capabilities commensurate and aligned to the new world and to our roles as fiduciaries for the financial and retirement well-being of millions — as managers of pension and retirement assets and as long-term investors? Providers are sandwiched between governments and regulators, and beneficiaries and customers. The shift to customer centricity, defined contributions and the requirement for member action means that both stakeholder groups should be fully aligned.
In this follow up to our executive summary, we frame 10 provocative hypotheses that are supported by EY analysis and interpretation, based on global client experiences. We encourage you to share these reports and help providers and asset managers understand the important role they play in managing pension and retirement assets globally.
Partner, Global Pension & Retirement Leader
Partner, Global Wealth & Asset Management Leader
Senior Manager, Global Pension & Retirement Program Director
Global Insurance – Pension, Retirement and Actuarial Leader