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Teach-in DC/Age of Responsibility 14 July 2015 1
Big Picture• Aging
population• Dependency
ratio falling• People are
not saving enough
Teach-in DC/Age of Responsibility 14 July 2015 2
Teach in: DC Investment Strategy in the ‘Age of Responsibility’
Teach-in DC/Age of Responsibility 14 July 2015 3
Teach-in DC/Age of Responsibility 14 July 2015 4
Teach-in DC/Age of Responsibility 14 July 2015 5
“People need to save more”
• A savings culture and system• Ensure a “living wage” in
retirement• Most people• By 2035
Save 15%!
Teach-in DC/Age of Responsibility 14 July 2015 6
E A S T
TimelySocial
Attractive
Easy
Teach-in DC/Age of Responsibility 14 July 2015
Teach-in DC/Age of Responsibility 14 July 2015 8
Who are “most people”?
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 970
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Distribution of UK Incomes (Tax Payers Only)
Teach-in DC/Age of Responsibility 14 July 2015 9
What is a “living wage” in retirement?£15k a yearRequires a pension “pot” of £200kContributions Required: Salary
Age started saving: £20,000 £30,000 £50,00020 12% 8% 5%30 17% 12% 7%40 26% 18% 11%50 45% 30% 18%60 112% 75% 45%
Teach-in DC/Age of Responsibility 14 July 2015
Auto Enrolled Pension
ISA
State Pension
Home Ownership
• More Timely => Like “Help to Buy”
• Easier & More Social => Workplace ISA
• Easier & More Social => Source of Retirement Income
• More Attractive => E-E-E• Less Cost => Annual
Allowance £5k & Flat Tax
Teach-in DC/Age of Responsibility 14 July 2015
• More Timely => Like “Help to Buy”
• Easier & More Social => Workplace ISA
• Easier & More Social => Source of Retirement Income
• More Attractive => E-E-E• Less Cost => Annual
Allowance £5k & Flat Tax