18 October 2017 | 13:45 – 14:45 | Bill Gallagher Room
Relevant practice area(s): Retirement Matters
Suggested audience knowledge level: Foundational
Actuarial advice on the DC space on income adequacy
The actuarial profession has not got involved adequately enough in the DC space, especially in as far as advice on the appropriate levels of income that people should be targeting and the right investment approaches to deal with this issue. Since the advent of DC, trustees and members focus only on the pot of money (Fund Credit) and the return earned. If the focus is ensuring that people achieve financial security in their post-retirement years, then to simply check that Fund Credit balances match the corresponding asset values is not good enough. We should be looking at member level funding levels (relative to DB type targets), the actions needed to address shortfalls (in the same way as we do for DB funds), investment strategies, post-retirement income sustainability and longevity risk management.
DC Projections models and reports are valuable tools in helping trustees and members understand these issues