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OECD Roadmap for the good design of defined contribution retirement savings plans

14 April 2021 | Policy position

EFAMA welcomes the proposed revised OECD Roadmap. We would like to congratulate the OECD team working on private pensions for the wide-ranging research projects it undertook over the past years, which provided sound, evidence-based arguments to update the 2012 Roadmap.

We strongly support the main messages of the Roadmap, in particular the importance of


  • ensuring the coherence of a DC pension component within a broader pension system.
  • providing financial incentives to promote retirement saving and ensure inclusiveness.
  • establishing straightforward, stable and common tax rules across retirement saving plans to avoid confusion and maintain the attractiveness of saving for retirement.
  • informing savers about the cost of guarantees in terms of expected returns and retirement income.
  • considering automatic enrolment to enhance participation in DC plans.
  • limiting early access to retirement savings to exceptional circumstances.
  • stressing the role of contributions and investment returns in reaching retirement income objectives.
  • fostering competition in the DC market and focusing on value-for-money rather than cost alone.
  • providing well-designed default options such as life cycle investment strategies.
  • recognizing that annuities are not necessarily the best protection against longevity risk.
  • providing flexibility in the choice of solutions for the pay-out phase.
  • ensuring appropriate mortality assumptions are used by providers of lifetime pension income.
  • ensuring effective, personalized, regular, consistent and unbiased communication to members.
  • adopting national financial education strategies to increase awareness about the importance of retirement saving.

There are, however, a few points on which some clarifications and adjustments would be useful to reinforce the recommendations and avoid misunderstanding. Details can be found in the full response, downloadable above.

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