Translate awareness of the need to save for retirement into action
Many people are aware of the need to take personal responsibility for their retirement savings, however, they are not actively planning yet. Employers and governments can help by continuing to raise awareness and through encouraging workplace benefits.
Start personal savings early and save consistently
Starting saving early – even small amounts – can help achieve better retirement outcomes and protect against unexpected life events.
Plan for the unexpected
Many people retire sooner than expected – and mainly due to illness or job loss. Having a back-up plan such as a personal emergency plan or insurance for income replacement, can help individuals weather short-term financial difficulties.
Maintain or increase incentives for individuals to save
Most people would be encouraged to save more by financial incentives such as tax incentives and employer contributions to employee savings plans.
Make saving easy
Simple, limited and “user-friendly” retirement savings products could encourage people to save more. Powerful approaches to making it easier are auto-enrollment and automatic increases, combined with default investment options that include life-cycle or target-date funds.
Embrace active aging and working longer
Most employees envision working at an older age and a gradual transition into full retirement. Governments and employers should change policies to meet this new reality. Such changes could include retraining, part-time work and other phased retirement programs.