Welcome to Issue 4, 2009 of Retirement, Risk & Finance Perspective, Mercer's home for thought-provoking insights on retirement and pension issues facing multinational companies.

In this issue:

The psychology behind pension plan decisions – Part 2: Accumulation

Defined contribution plans, now the global norm for retirement provision, require plan members to make decisions about enrollment, accumulation and draw-down. Based on insights and studies from a range of academics in the field of behavioral finance, this article explores how understanding plan member behavior beyond the enrollment stage, discussed in Part 1 of our series, can help trustees and plan sponsors structure their DC plans during the accumulation phase of a member’s lifetime in order to make them work more effectively.

Simon Pearse Anna Rappaport

World's first retirement rating system: Melbourne Mercer global pension index - Part 1

The comparison of different national retirement incomes is controversial, as each system reflects that country's particular social, economic and political circumstances. For the first time, the retirement systems of eleven countries have been compared using the newly developed Melbourne Mercer Global Pension Index. This article discusses the evaluation process, the indicators that affect provision of retirement income and the countries included in this groundbreaking report.

David Knox

Securing Australia's retirement income system

Tim Jenkins examines the adequacy and sustainability of Australia's retirement income system in the wake of the global financial crisis and an aging population. In this article, which is a synopsis of the recent Mercer report, “Securing Retirement Incomes: Risks and opportunities for Australia's retirement income system,” the author offers some suggestions that would help ensure a secure retirement income system, noting that the Australian public, the superannuation industry and the government are all ready for reform.

Tim Jenkins

Retirement planning: More employee choice on the horizon in Hong Kong

With the recent passing of Hong Kong’s Mandatory Provident Fund Schemes (Amendment) Bill 2009, employees will now have greater control over their MPF savings, which should promote greater market competition among providers. This article looks at the implications for the various stakeholders – the government, providers, employers and employees – and what needs to be done to create a robust retirement system.

Jennifer Chee Ellen Ip

Upcoming coverage:

In our upcoming 2009 issue, we will continue our series on the psychology behind pension plan decisions by covering the decumulation – or retirement – phase. We will also provide insights and reactions to the Mercer 2009 Global DC Survey and a second article on the Global Pension Index, giving our insights from the initial country ratings.

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.