Welcome to Issue 5, 2009 of Retirement, Risk & Finance Perspective, Mercer's home for thought-provoking insights on retirement and pension issues facing multinational companies.

In this issue:

Mercer 2009 Global Defined Contribution Survey : Insights and opportunities revealed 

Our Global DC Survey revealed some key insights from defined contribution sponsors in 33 countries, including their approaches to and objectives for DC management, their reactions to the recent financial crisis, what investment strategies (including lifestyling) they are pursuing, and how they manage their plans. With employers characterizing their role as facilitators, this article explores their approaches to communication, education, governance and investment options.

Craig Burnett   Andrew Kramer   Kate Jainchill

The psychology behind plan decisions – Part 3: The decumulation phase

Defined contribution plans, now the global norm for retirement provision, require plan members to make decisions about joining, accumulation and retirement. Drawing on the same insights and studies from a range of academics in the field of behavioral finance we used for the first two articles, this last article focuses on decisions employees make during the payout or decumulation period and the strategies trustees and plan sponsors can adopt to help participants achieve retirement objectives.

Simon Pearse   Anna Rappaport

World's first retirement rating system: Melbourne Mercer Global Pension Index – Part 2

Retirement income systems around the world have considerable diversity, with a mix of public and private provisions and a variety of designs and government requirements. But which country has the best system? Unique to research in this area, the Melbourne Mercer Global Pension Index uses more than 40 indicators to compare the pension systems of 11 countries in terms of adequacy, sustainability and integrity.

David Knox

Survey

Please participate in Mercer's 2009 Global Governance Survey.  

The purpose of this survey is to collect input from multinational organisations on their current global benefit plan governance structures, the internal and external factors impacting the design and evolution of those structures and the changes that are likely in the near future.

A summary of the results will be available to all participants in early 2010.

Upcoming coverage:

As we move into 2010, we will continue to cover key developments in regions around the world, including the Middle East, and also monitor aspects of managing defined benefit plan risks, new ideas emerging on longevity and the best design for retirement plans in the future. As these ideas firm up, we will present them in ways relevant to multinational employers. As always, we continue to welcome your comments on the topics of most significance to you.

Retirement, Risk & Finance Perspective is intended to stimulate debate around the challenges in designing and developing a global retirement benefits strategy. You are welcome to join the debate; contact us with any comments or questions.