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In the UK, DC has become the dominant form of pension provision for new employees. Membership was projected to exceed DB market share early in the next decade but, due in part to the economic crisis, this has arguably already occurred. Trust and contract-based services are in demand while the Pensions Regulator’s focus has been on DC governance.
Mercer’s DC offering helps clients control costs and manage financial, operational and reputational pension risks. Employer spend becomes more transparent to employees and enables them to manage their future wealth planning effectively.
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Most companies are closing final-salary pensions to new and existing members as the costs soar. But some employers are being innovative, says Tony Pugh.
This article was first published on 13 September 2009 by the Sunday Telegraph Money section, special to the Daily Telegraph.
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Mercer's 2009 global defined contribution survey - results
The move from traditional defined benefit to defined contribution retirement plans is well underway in many countries. With this shift come various challenges for employers of all sizes. By understanding the practices other plan sponsors are following and the trends in your and other countries, you will be prepared to offer your employees a competitive DC plan that will help them prepare for retirement. We received over 1,500 responses (including over 300 responses from multinational companies) from companies in 33 countries across Continental Europe, Asia-Pacific, Latin America, the US, Canada and the UK. The survey highlights the increased global prevalence of defined contribution plans and focuses on current issues and future trends.
Global DC survey results available now
Mercer webcast
2, 3, 4, 5, 9, 10, 11 November 2009 - The move from traditional defined benefit to defined contribution retirement plans is well underway in many countries. With this shift come various challenges for employers of all sizes.
Attending this webcast will provide attendees with valuable insights on global and regional DC trends that will help you manage your DC plans going forward. Please join us for this free event to tap into the data coming out of this truly global survey and to hear Mercer DC specialists speak about the implications for plan sponsors.
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This does not contain investment advice relating to your particular circumstances. No investment decision should be made based on this information without first obtaining appropriate professional advice and considering your circumstances.
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Mercer is a leading global provider of investment consulting services, and offers customized guidance at every stage of the investment decision, risk management and investment monitoring process. We have been dedicated to meeting the needs of clients for more than 30 years, and we work with the fiduciaries of pension funds, foundations, endowments and other investors in some 35 countries. We assist with every aspect of institutional investing (and retail portfolios in some geographies), from strategy, structure and implementation to ongoing portfolio management. We create value through our commitment to thought leadership; world-class, independent research; and top-notch consultants with local expertise.
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