News Digest: OECD calls for pension reforms amidst global crises
December 8, 2022
The 2022 OECD Pensions Outlook underscores the need to ensure a sustainable and adequate retirement income for pensioners with a focus on pensions as a long-term investment in the future wellbeing of citizens. The report released in December, however, says the recent economic crisis hasn’t had a significant impact on pension outcomes.
OECD data suggests a steady increase in pension assets during 2021 with those earmarked for retirement showing a steady increase with a few short-lived downturns. These assets had more than tripled in value over the past year.
Another report released by the World Economic Forum highlighted that the combined retirement savings gap is expected to touch $400 trillion by 2050 between eight major economies that include the US, UK, Canada, Australia, the Netherlands, Japan, India and China. OECD says given their long-term horizon, pensions are prime candidates for investments in long term but illiquid assets such as infrastructure.