Pensions - Articles - The challenges faced by the At Retirement market

 The paper, titled ‘The Future of (At) Retirement’ aims to understand the DC decumulation phase and what products, processes and guidance the pensions industry needs now, and in the future, to deal with the challenge of how to spend DC saving pots.

 Kevin Wesbroom, senior partner at Aon, said: “Understanding and deciding the future of the DC market is a global challenge – and all the major DC countries around the world are grappling with this issue. Our research and work with our Aon colleagues worldwide has led us to the conclusion that there is no silver bullet solution out there. However, there are actions that can be taken now to enhance the current position.

 “Decumulation is a challenge – but it’s one that we need to face up to as an industry - and then deliver solutions that meet real needs. We need to be working with the grain of what those needs will be as pensions, work and life change – even up to dealing with the consequences of the 100-year life.”

 The paper highlights that rather than tackling all the features for the optimum retirement income product, the pensions industry should focus on tackling the five central components first:
 - Investment policy
 - Sustainable Income
 - Longevity risk management
 - Flexibility
 - Decision support

 ‘The Future of (At) Retirement’