Editorial
Warnings over a looming pension crisis occur with increasing regularity. Global populations are not only ageing, they are also shrinking in many regions. The number of workers is declining in Europe and parts of Asia, living costs are rising and wages are stagnating. Set against a backdrop of extraordinary global uncertainty, this demographic transition is putting pressure on retirement systems around the globe.
At the same time, the world struggles to keep the goal of carbon neutrality by 2050 alive. The coming years are critical if we are to achieve a sustainable and inclusive transition to a low-carbon economy. At Amundi, we recognise we share responsibility with our clients to drive positive change and achieve our climate goals. As a leading asset manager, we can play a crucial role in mobilizing the capital necessary to support the energy transition and working hand in hand with our pension funds clients to achieve their sustainability goals.
This edition of our Pension Funds letter digs deeper into some of the elements underlying these concurrent challenges and the steps being taken to overcome them. While progress in responsible investment may have stalled somewhat, due to intensifying debate and polarisation, particularly in the US, global momentum remains resilient. We explore how the landscape is likely to evolve and what this means for sustainable finance opportunities for pension funds.
The move away from defined benefit pensions systems shifts the burden of risk and decision-making away from employers to employees. Making these decisions is complex and compounded by behavioural tendencies. We review the different ways of incentivising retirement savings in a new study.
Public pension provision and sustainability is the focus of our third article as we look at the various reforms that have been implemented across Europe to address the demographic challenge.
Finally, we wrap up this edition with our regular review of the markets and how this has been driving pension funding ratios.
EXECUTIVE SUMMARY
- Responsible Investment Pension Fund Outlook
- Overcoming barriers to retirement savings: behavioural factors and existing schemes
- Eurozone Pension Systems: a health check
- Market risks are increasing, but funding ratios remain comfortable
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