Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi
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Transcript of Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi
![Page 1: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/1.jpg)
Helping members take
responsibility for their
retirement
Lessons from abroad
Rob Rusconi, Tres Consulting
![Page 2: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/2.jpg)
Top tips for retirement saving
What this address is not
![Page 3: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/3.jpg)
Top tips for retirement saving, or
a summary of everybody else’s smart thinking
What this address is not
![Page 4: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/4.jpg)
Top tips for retirement saving, or
a summary of everybody else’s thinking
Because:
- we’re not economic units
What this address is not
![Page 5: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/5.jpg)
Top tips for retirement saving, or
a summary of everybody else’s thinking
Because:
- we’re not economic units,
- our lives and paths are unique
What this address is not
![Page 6: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/6.jpg)
Top tips for retirement saving, or
a summary of everybody else’s thinking
Because:
- we’re not economic units
- our lives and paths are unique, and
- we only have once chance
What this address is not
![Page 7: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/7.jpg)
We might wonder whether anybody really cares any more
- DC members bear the risk
- Employer no longer funder of last resort
- Power lies in theory with the trustee, but in practice with the financial services industry
- And advice from the industry is not entirely trustworthy
At the heart of the problem
![Page 8: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/8.jpg)
We might wonder whether anybody really cares any more
- DC members bear the risk
- Employer no longer funder of last resort
- Power lies in theory with the trustee, but in practice with the financial services industry
- And advice from the industry is not entirely trustworthy
Few financial advisers have the right incentives to care
- seldom remunerated on quality of advice
- seldom there to help when things go wrong
At the heart of the problem
![Page 9: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/9.jpg)
Running out of Money Before you Run out of Time
The Big Retirement Risk
Erin Botsford, publ. Greenleaf
![Page 10: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/10.jpg)
Running out of Money Before you Run out of Time
The Big Retirement Risk
Erin Botsford, publ. Greenleaf
Good core message
- Take control of your retirement planning
- Plan ahead with the goal in mind
- Take care accepting the wisdom of experts
- Invest assets in retirement for income
Great advice on distinguishing needs from wants and hopes
Good explanation of the characteristics of asset classes
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Running out of Money Before you Run out of Time
The Big Retirement Risk
Erin Botsford, publ. Greenleaf
Pessimistic on equities
- Yes, equity returns are volatile
- Yes, entry and exit timing can be lucky
- But, no, shares are not just a risky asset
- Not even an asset whose return rewards the risk taken
Shares are a good match for your pension liabilities
Though you must take care of the volatility of share values
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A Pension Promise to Oneself
Stephen Sexauer & Laurence SiegelFinancial Analysts Journal vol 69 no 6 p 13
![Page 13: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/13.jpg)
A Pension Promise to Oneself
Stephen Sexauer & Laurence SiegelFinancial Analysts Journal vol 69 no 6 p 13
Another good core message: take responsibility
- Consider your DC savings the way an actuary would a DB fund
- Work out your liabilities and discount them
- Accumulate assets on the basis of an economically sound plan
- De-cumulate in old age to preserve the value of longevity pooling
Be prepared to make personal fiscal adjustments
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A Pension Promise to Oneself
Stephen Sexauer & Laurence SiegelFinancial Analysts Journal vol 69 no 6 p 13
![Page 15: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/15.jpg)
A Pension Promise to Oneself
Stephen Sexauer & Laurence SiegelFinancial Analysts Journal vol 69 no 6 p 13
![Page 16: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/16.jpg)
A Pension Promise to Oneself
Stephen Sexauer & Laurence SiegelFinancial Analysts Journal vol 69 no 6 p 13
![Page 17: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/17.jpg)
A Pension Promise to Oneself
Stephen Sexauer & Laurence SiegelFinancial Analysts Journal vol 69 no 6 p 13
Main criticisms
- Sophistication beyond the reach of most
- Need for external information on retirement rates
- Assumptions probably unduly conservative
Personal fiscal adjustment unlikely in practice
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Takeaways: for members
Take personal responsibility
Learn along the way
Careful with your trust
Live for tomorrow
Do not overestimate competence
![Page 19: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/19.jpg)
Takeaways: for members
Take personal responsibility
Learn along the way
Careful with your trust
Live for tomorrow
Do not overestimate competence
![Page 20: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/20.jpg)
Takeaways: for trustees
Take personal responsibility
Learn along the way
Careful with your trust
![Page 21: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/21.jpg)
Takeaways: for trustees
Take personal responsibility
Learn along the way
Careful with your trust
Live for tomorrow
Do not overestimate competence
![Page 22: Helping members take responsibility for their retirement: lessons from abroad by Rob Rusconi](https://reader034.fdocuments.in/reader034/viewer/2022042700/559726391a28ab0e0e8b46db/html5/thumbnails/22.jpg)
Thank you