Defined Contribution (DC) pensions are playing a more significant role in retirement provision in Ireland as Defined Benefit (DB) coverage continues to contract. What might however be perceived as a simpler pensions landscape when compared to DB, retirement saving with a DC offering still comes with its own set of complex challenges. When we consider a DC pension is likely to be the only retirement plan many people will experience, and indeed it is likely to be their sole source of retirement income beyond the State pension, it is vital DC pensions deliver for stakeholders.
Retirement readiness is of course important for employees and their DC scheme needs to provide sufficient replacement income as they move into their retirement. It is also important for employers however in managing the potential workplace issues that will arise from employees approaching retirement age who are simply not financially in a position to retire. Willis Towers Watson recently surveyed a range of employers on the DC challenges as they see them with specific focus on the employer view of their employees' retirement readiness. The survey researched employer views in a number of areas:
- What is driving the employer decision making process when it comes to their DC pension?
- How important retirement readiness is for employees?
- How ready they feel their employees are for retirement?
- What time and effort the employer is putting into help improve the employee DC pension outcome at retirement?
The detailed survey results, and also the observations that can be drawn from those, are covered in our client update, (see link to PDF below).