1. 2008 Annual Meeting ● Assemblée annuelle 2008 Québec 2008 Annual Meeting ● Assemblée annuelle 2008 Québec Envisioning the Future Retirement 20/20 Martine Sohier Society of Actuaries June 2008 Envisioning the Future Retirement 20/20 Martine Sohier Society of Actuaries June 2008

2. Agenda Goal Overview of Conferences Highlights Next Steps 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

3. Retirement 20/20 Goal Initiative to rethink retirement systems Go beyond limitations of today’s environment Achieve best outcome for most people 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

4. 2006 Conference First step What does the system need to achieve? Four key stakeholders Society Individuals Markets Employers 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

5. 2006 Conference Asked fundamental questions for key stakeholders Who has what needs ? Who can bear what risk ? Who can play what role ? 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

6. 2006 Conference Headlines Retirement systems should Self-adjust Align stakeholders’ roles with their skills Consider new norms for work and retirement Better align with markets Clarify role of employer No success without improvements in the health and long-term care systems 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

7. 2007 Conference Focus on aligning roles with skills Stakeholders playing the right role is critical to success Use knowledge and talent optimally Definition of stakeholder roles shapes new designs 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

8. Role of Society Provide structure to the retirement system Help individuals make right decisions Set some guidelines Provide consumer protection 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

9. How does society provide structure? Encourage lifetime income Help accumulation of funds Facilitate creation of groups (markets) Provide oversight 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

10. Role of markets Need structure to work best Create large groups with competition Provide proper incentives for agents Offer standardized products Encourage market innovation 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

11. Role of employer Opening possibilities Facilitate savings Elect to play other roles Purchasing agent Facilitating Guarantor Educate and influence employees Rethink second tier 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

12. Next Steps 2008 Symposium Research focus 3 calls for papers November 2008 in Washington DC By invitation 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

13. 2008 Symposuim Calls for papers Changing individuals’ retirement behaviour by changing signals Adopting self-adjusting mechanism to ensure long-term retirement plan health Structuring default distributions to benefit most retirees 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008

14. Where do we go from here? Retirement 20/20 is a process For more information www.retirement2020.soa.org If you want to volunteer, let us know Contact Sandy Kruszenski, Pension Section Council Chair, at sandbrd@comcast.net 2008 Annual Meeting Assemblée annuelle 2008 2008 Annual Meeting Assemblée annuelle 2008