Global Retirement Systems and Income Conversion Challenges

This report examines the challenges faced by global retirement systems, particularly focusing on the conversion of savings into income. It highlights the demographic and economic pressures prompting reforms in retirement systems worldwide. With increasing life expectancy and lower birth rates, countries are struggling to fund longer retirement periods with a declining worker-to-retiree ratio. The report analyzes the shift from Defined Benefit (DB) plans to Defined Contribution (DC) plans, emphasizing the need for effective strategies to convert accumulated savings into retirement income. It includes case studies from eleven countries, detailing their approaches to retirement income systems and the complexities retirees face in managing their savings. The report aims to identify best practices and develop a framework for designing effective retirement systems that ensure financial security for retirees. It also discusses the reluctance of retirees to annuitize their savings and the varying degrees of freedom retirees have in accessing their funds across different countries.