Retirement Savings Adequacy Contributions & coverage

FSB retirement funds data: initial analysisSeptember 2008 Contributions and coverage OECD / IOPS Global Forum Understanding and meeting needs  Six models of long-term provision  Two broad approaches to improved system effectiveness  Expand the formal-sector system  Facilitating saving in the informal employment sector  The role for government

FSB retirement funds data: initial analysisSeptember 2008 Contributions and coverage OECD / IOPS Global Forum Preface: the need for coherence Social security Formal pension & insurance vehicles Access to financial services Provision to the informal sector System design & co-ordination System design & co-ordination System design & co-ordination System design & co-ordination Regulation & supervision Regulation & supervision Regulation & supervision Regulation & supervision Re-defining groups Re-defining groups Re-defining groups Re-defining groups Reaching communities Reaching communities Reaching communities Reaching communities Delivery mechanisms Delivery mechanisms Delivery mechanisms Delivery mechanisms Tier II supervision Tier II supervision Tier II supervision Tier II supervision State coercion State coercion State coercion State coercion State facilitation State facilitation State facilitation State facilitation Flexibility for innovation Flexibility for innovation Flexibility for innovation Flexibility for innovation Regulatory restraint Regulatory restraint Regulatory restraint Regulatory restraint Demand-side research Demand-side research Demand-side research Demand-side research

FSB retirement funds data: initial analysisSeptember 2008 Contributions and coverage OECD / IOPS Global Forum Understanding and meeting needs  Six models of long-term provision  Social security  Occupational pension funds  Mandatory individual accounts  Voluntary supplementary provision  Facilitated additional provision  Unsupported informal provision

FSB retirement funds data: initial analysisSeptember 2008 Contributions and coverage OECD / IOPS Global Forum Two broad approaches  Expanding the formal system  Push the mandate to participate  Improve the incentives –Flexibility of contribution –Flexibility of access –Financial incentives –Design incentives  Establish a culture of participation  Learn from the examples

FSB retirement funds data: initial analysisSeptember 2008 Contributions and coverage OECD / IOPS Global Forum Two broad approaches  Facilitating savings by the informally employed  The government role is spread across functional areas  Long-term saving is not always rational  Communities have other ways of meeting goals  Government support must rest on two pillars –Coherence of policy –A deep understanding of customer need

FSB retirement funds data: initial analysisSeptember 2008 Contributions and coverage OECD / IOPS Global Forum Refrain: the need for coherence Social security Formal pension & insurance vehicles Access to financial services Provision to the informal sector System design & co-ordination System design & co-ordination System design & co-ordination System design & co-ordination Regulation & supervision Regulation & supervision Regulation & supervision Regulation & supervision Re-defining groups Re-defining groups Re-defining groups Re-defining groups Reaching communities Reaching communities Reaching communities Reaching communities Delivery mechanisms Delivery mechanisms Delivery mechanisms Delivery mechanisms Tier II supervision Tier II supervision Tier II supervision Tier II supervision State coercion State coercion State coercion State coercion State facilitation State facilitation State facilitation State facilitation Flexibility for innovation Flexibility for innovation Flexibility for innovation Flexibility for innovation Regulatory restraint Regulatory restraint Regulatory restraint Regulatory restraint Demand-side research Demand-side research Demand-side research Demand-side research