The OECD Pensions Outlook aims to explore the introduction, development, and strengthening of asset-backed pension arrangements, the role that employers can play in their provision, and the impact of different fee structures on individuals saving for retirement and on providers. The 2022 edition of the report primarily focuses on providing a comprehensive overview of best practices for developing mortality tables and policy guidance on the design, implementation, and continuation of non-guaranteed lifetime retirement income arrangements.
The report explores the development of mortality assumptions to build mortality tables, which are necessary to ensure the sustainability of lifetime incomes, and offers an international overview of longevity trends and drivers over the last several decades, including the impact of the COVID-19 pandemic. In addition, the report details the standard mortality tables developed across OECD member countries and offers guidelines to assist regulators and supervisors in assessing the appropriateness of the mortality assumptions and tables used in the context of retirement income provision.
The report also provides policy guidance on how to design, implement, and continue the operation of non-guaranteed lifetime retirement income arrangements, such as variable annuities, which can be an attractive option for retirement savers looking for more flexibility and control over their retirement income. The report offers recommendations for ensuring that these arrangements are structured in a way that balances the need for flexibility with the need for sustainable and adequate retirement income.
Overall, the OECD Pensions Outlook provides a comprehensive analysis of the challenges facing pension systems and the opportunities for improving retirement income provision through asset-backed pension arrangements and non-guaranteed lifetime retirement income arrangements. The report offers valuable insights and recommendations for policymakers, regulators, and stakeholders to enhance retirement income security and sustainability.