A look at defined contribution plans in Asia Pacific
Defined contribution (DC) plans have become the primary vehicle for retirement savings in major markets across Asia Pacific — and they’re growing in asset size. According to WTW’s Global Pension Assets Study, Australia is the biggest DC market outside the US, with US$ 2.8 trillion in asset size. In Hong Kong, DC assets comprise approximately 45% of the market’s GDP. There are 10 million DC members in Japan, and the Indian government has recently introduced a state DC plan called the National Pension System.
It’s clear that there’s a momentum around DC in Asia Pacific. What are the implications for employers, and for members? Many feel that they don’t have the requisite knowledge to optimise their investment choices and rely on a “set it and forget it” policy. We asked our investment and retirement experts to weigh in in this five-part video series.
