The Irish government is proposing to introduce a new national pension scheme for employees who have no occupational pension entitlement. Employees will be automatically enrolled in the new scheme, unless they specifically opt out. The earliest likely start date for new scheme is 2023.

The government’s Strawman proposals are set out in: Automatic_Enrolment_Strawman_Proposal.

My response, dated 4 November 2018, proposes a different approach.

The following is a list of my pension-related documents and my posts related to each one.

Pension Documents

Document Date Description Action
17/10/2019 Slide showing the higher benefits in retirement from leaving money invested in "real" assets Read
Document Date Description Action
05/06/2019 Supplement to 27 May 2019 paper for Working Group of Society of Actuaries in Ireland. Further analysis of simulation results for auto-enrolment Read
Document Date Description Action
27/05/2019 Paper to Working Group of Society of Actuaries in Ireland on simulation results for smoothed approach to auto-enrolment pensions Read
Document Date Description Action
17/12/2018 Presentation to pensions experts on smoothed equity investment for auto-enrolled pensions Read

On 17 December 2018, the Pensions Authority convened a meeting of pensions experts to discuss the merits of the proposed smoothing approach to auto-enrolment. This is my presentation at the start of the meeting.

The third slide is key. It shows how much pension savers lose (on average) by taking a "lifestyle" approach to investing, i.e. de-risking in the years leading up to retirement by moving funds to low-risk, low-return assets, and then leaving them in such assets throughout their retirement. The title of the slide - "Foot off the gas when fund at its maximum" - says it all. The proposed approach allows contributors to metaphorically keep their foot on the gas for the entire duration of their membership, enabling them to benefit from the expected higher returns on equities/property from the day they start contributing to the day they die.

Document Date Description Action
04/11/2018 Submission to Department of Employment Affairs and Social Protection on smoothed equity investment for auto-enrolled pensions Read

This is my submission to government for a new approach to auto-enrolled pensions. Under the proposed approach, contributors' savings are invested in equities, property and similar "real" assets, both during their employment and after they've retired. These assets should produce higher long-term returns than deposits and bonds, but with a risk of sharp losses in the short-term. No-one likes losing money. The proposed approach protects contributors from the risk of large short-term losses while allowing them to benefit from the higher expected long-term returns. The proposed approach also addresses the risk of contributors outliving their savings.

Document Date Description Action
15/10/2018 Article for "The European Actuary" on smoothed equity investment to deliver high and stable drawdown benefits to retired employees Read
Document Date Description Action
28/02/2018 Article in Irish Broker magazine Read

This magazine article of early 2018 summarises my presentation of 7 February 2018 to the Society of Actuaries in Ireland.

Document Date Description Action
07/02/2018 A New Approach to Drawdown on Group DC Pensions Read

This was the first public presentation of my proposed smoothing approach to pensions, presented to the Society of Actuaries in Ireland in February 2018. It dealt only with the drawdown stage, but I indicated (in slide 68) that the approach would be ideal for auto-enrolment, both pre and post retirement.