Mercer, a global consulting leader in advancing health, wealth and careers, and a wholly-owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), today announced the launch of “Bold Ideas for Mending the Long Term Savings Gap,” which addresses ways to improve the $70 trillion global retirement savings deficit. These ideas are part of Mercer’s ongoing commitment to exploring ways of improving financial security for individuals.
Through four main themes, Mercer explores innovative responses to what Jacques Goulet, President of Health and Wealth, Mercer refers to as, “one of the greatest crises of our time, for which there is no silver bullet.” Mr. Goulet believes that the issue of financial security is not just about retirement but instead about broader financial wellness concerns that plague individuals at varied life stages. These financial concerns undermine social and employment productivity, challenging people to think differently.
“We do not believe that this is merely a ‘retirement savings matter’. The retirement savings gap is part of the significant financial security issue that is chipping away at productivity and putting individuals into periods of financial instability.” said Mr. Goulet. “Helping to find solutions to this problem goes to the core of our mission at Mercer, our offerings and our extensive research and data in this area.”
According to Mr. Goulet, financially secure individuals are confidently able to set and achieve financial goals for themselves and their households, to support their dependents, to enjoy a desired quality of life, and to cover emergencies, without worrying about whether their future income is enough to cover expenses or to sustain retirement.
Through “Bold Ideas,” Mercer outlines the importance of multiple stakeholders coming together to take meaningful action against the savings deficit. Stakeholders include governments, employers, and financial intermediaries, all of whom have the incentive and the ability to help mend the long-term savings gap. Each group also stands to benefit by helping to ensure that their citizens, employees, and customers are able to save efficiently and appropriately for the future.
The paper details the main challenges causing the long term savings gap, including:
- Longer lives combined with lower birth rates
- Lack of easy access to pensions and savings products
- Individuals ill-prepared for greater financial responsibility in retirement
- Lack of trust in financial markets and products
- Low growth environment
- Gender imbalance in long-term savings
Mercer has an ongoing mission to advance global financial security through strategic relationships with world renowned organizations like the World Economic Forum. Mercer is the lead collaborator on the World Economic Forum’s Retirement and Investment Systems Reform Project. In partnership with the Forum, Mr. Goulet has presented research findings to global leaders on the current state of global retirement systems and the importance of multi-stakeholder collaboration. Additionally, Mercer has a wide array of offerings aimed at resolving financial wellbeing challenges including the Mercer Financial Wellness and Harmonise™ platforms, among other solutions.
“Success will require bold and immediate action. Given the current size of the retirement gap, all relevant stakeholders need to act now.” said Renee McGowan, Global Head of Individual Retirement Solutions and Financial Wellness, Mercer. “Public and private sector individuals need to work together to create a cultural revolution that engages individuals in saving for the long-term, shifting the concept of ‘saving’ from a financial services experience into a consumer one. People need to understand what ‘good’ looks like when it comes to savings products, advice, and decisions. But they also need to have the confidence to act on their knowledge to achieve the best outcomes.”
To learn more about Mercer’s “Bold Ideas” and about Mercer’s work on financial security, go to www.mercer.com/our-thinking/wealth/bold-ideas-for-mending-the-long-term-savings-gap.html
Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and careers of their most vital asset – their people. Mercer’s more than 20,000 employees are based in 43 countries and the firm operates in over 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global professional services firm offering clients advice and solutions in the areas of risk, strategy and people. With annual revenue of $13 billion and 60,000 colleagues worldwide, Marsh & McLennan Companies is also the parent company of Marsh, a leader in insurance broking and risk management; Guy Carpenter, a leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.
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