An outdated model
Built on welfare economics and ongoing growth, pension models in Europe had the ambition to provide sustainable defined and guaranteed retirement income for individuals for the last half-century. Clearly defined benefits and guaranteed pension schemes for employees with social pensions ensured a healthy replacement retirement income. This even extended to guaranteeing protection against disability, survivorship, unemployment, and early retirement.
The Need For Something New
The last decades of the 20th century saw the emergence of three key macro trends to disrupt the traditional pension model: A sharp increase in longevity (people living for longer), lower interest rates (lower for longer), and tilting old age dependency ratios. These factors exposed vulnerabilities within the pension system, resulting in a slew of reforms. Different countries are in different stages of these reforms.
A Shift To Individualization
Individualization of pensions’ is emerging as a long-term reform trend across Europe. Through different levers in the long term, the responsibility of ensuring adequate and sustainable retirement income shifts from state to individuals.
With that in mind, making individuals cognizant of this future reality will be by far the biggest challenge pension stakeholders (governments, pension providers, and employers) need to meet. Activating individuals essentially involves nudging them from reactive transactional interaction to proactive advice-seeking engagement.
What we can do for you
We support and advise pension providers in developing their digital strategies and leveraging data to optimize processes and meet customer needs.
Our strong combination of industry-specific know-how and technological understanding has empowered multiple pension providers.