The document discusses retirement readiness and pensions. It notes that (1) life expectancies are rising globally and working populations are decreasing, (2) many people are pessimistic about having enough savings for a comfortable retirement, but (3) expected retirement ages have not shifted much despite these concerns. It suggests that (3) companies can help improve retirement readiness by providing better pension plans, education, and investment options to support employees.

1. Retirement readiness –
preparing for the
future of pensions
Thurstan Robinson

2. 1
The world is changing

3. Ageing populations are rising globally…
Average Life Expectancy (in years)

4. More than you may think…
And the trend does not seem to be slowing
How long are we going to live?
True life expectancy (with future improvement) if past 10 years are indicative
Current 2050
Low Expected High Low Expected High
NL 84.7 / 86.6 92.2 / 93.7 123.3 / 127.0 88.3 / 90.0 95.2 / 96.4 157.3 / 161.5
UK 85.8 / 87.8 94.4 / 95.6 126.9 / 128.4 89.2 / 91.2 98.6 / 99.6 166.6 / 168.1
US 76.6 / 82.6 90.7 / 94.1 115.8 / 131.7 74.2 / 82.6 95.4 / 98.7 147.4 / 183.5

5. ……and working populations are decreasing

6. 2
People can see change coming

7. Widespread pessimism about retirement
48% female and 40% male are
very/somewhat pessimistic
Total 15% 29% 24% 6%
USA 13% 21% 31% 12%
Sweden 6% 24% 33% 6%
United Kingdom 12% 27% 29% 7%
The Netherlands 9% 30% 24% 5%
Germany 19% 23% 25% 8%
Spain 12% 33% 23% 5%
France 16% 37% 14% 2%
Hungary 31% 24% 14% 4%
Poland 20% 46% 20% 3%
Somewhat pessimistic Very pessimistic Somewhat optimistic Very optimistic
Q. How confident are you that you will be able to fully retire with a lifestyle you
consider comfortable?
Source: AEGON.

8. 3
But people are not yet ready for change

9. Old habits die hard?
Born in 1940 Born in 1970 Born in 2000
Pensions are Pensions have been Pensions are important.
important and the uninteresting. Hopes Will learn from mistakes
system is DB. Expects to retire in his late 60s of parents’ generation.
to retire at 65 and live and live for a further Will have fewer expectations
for a further 15 years. 20 years. about retirement age, but
will live to at least 90 years.
DB Complexity for the Individual DC
pensions pensions

10. Overall, women are less prepared for
retirement
Overall, women are less prepared for retirement
Men Women
High
High 5%
9%
Medium
Low Low
33%
49% 62%
Medium
42%
Source: AEGON.

11. Retirement ages not shifting despite pessimistic
outlook
Little variation in expected
26% of respondents envisage retirement age based on
retiring at 65 gender, age, income or
education
20 16 20 20 20
15 17 15 16 18
65 65 65 67 66 65 67 65 65 67
Total Germany France The United Poland Spain Hungary Sweden USA
Netherlands Kingdom
Full retirement Years in retirement
Q14/Q15. At what age do you think it is most likely that you will enter full retirement?/ How many years do you expect to spend in full
retirement? (all figures are medians)
Source: AEGON.

12. 4
How can companies help?

13. Corporate pensions are becoming more
important
– State pensions cut back
• Increasing pension age
• Decreasing pension payments
• Increasing pension contributions
– Employees will look to employers for support
• Education
• Contributions
• Appropriate investment opportunities

14. ‘With DC pensions, I am concerned that employees
may feel that they don’t have sufficient savings and
will look to the company to compensate them. The
issue is about delivering DC more intelligently. There
is much more to be done.’
“” Head of international benefits and compensation, major multinational
interviewed for AEGON Global Pensions Pensions in Europe Survey

15. Helping employees to help themselves
Making a difference
Have a plan, use it
• Engage and motivate
• Support employees
• Provide appropriate
investment solutions
• Auto-enrol?
• Auto-escalate?
• Flexible retirement?
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16. Every plan is a DB plan…
DB $$
$
$$
Retirement
$
DC $$
$
$$
Retirement
$

17. Any Questions?
Contact Information
Dr Thurstan Robinson
AEGON Global Pensions
thurstan.robinson@aegon.com
www.aegonglobalpensions.com
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