Having an effective global retirement strategy helps employers to make effective decisions and to anticipate change in a constantly evolving landscape.
Why is global retirement governance important?
ANNA BUDNIK: Retirement plans are essential to the long-term financial welfare of your employees. They usually account for your biggest benefits spend and are typically heavily regulated. If you want to be competitive as an employer, you have to make sure that the benefits you offer to your employees are attractive and effective at meeting their needs. You have to do this across a multitude of different regulatory and cultural environments and across a range of different benefit types.
Having an effective global retirement strategy helps to balance your attention across all of these competing needs. To develop this at a corporate level, it's important to reflect on what a successful retirement plan looks like for your organization as well as understanding your global retirement spend, and to execute this strategy, you'll need robust governance structures in alignment with your corporate principles.
When it comes to oversight of your retirement plans, there are a number of questions you should ask yourself. For example, do you feel confident that the retirement plans you offer are inclusive to all of your employees? Are all your retirement plans compliant with local legislation? How does the investment strategy align with your corporate ESG objectives?
As many employers continue to shift away from defined benefit to defined contribution plans, you also need to reflect on your responsibility towards your employees as they take on significant financial risks in a challenging economic environment. Getting your retirement strategy right adds enormous value to your employees and improves employee engagement. Getting it wrong, however, can incur significant financial and reputational costs.
The landscape in which you're operating is constantly evolving, and you need to work across central and local teams to make effective decisions and to anticipate change. At WTW, we're here to help you manage your global retirement strategy.