Sources: Illustration by The Vanguard Group, Inc. See data sources near the bottom of this webpage.†

Around the world, people are living longer and spending more time in retirement. This has led to increases in defined benefit pension liabilities and in many places has accelerated a shift towards defined contribution systems. Plan-design strategies that include automatic enrolment and
target-date default investments aim to improve plan members' outcomes.

Effective plan design
Default investments
Retirement income

†Years of retirement illustration uses longevity data from World Population Prospects: The 2012 Revision, by the United Nations, Department of Economic and Social Affairs, Population Division, © 2013 United Nations. Reprinted with the permission of the United Nations; and retirement-age data based on the Organisation for Economic Co-operation and Development's Ageing and Employment Policies – Statistics on average effective age of retirement accessed on 19 March 2015 from http://www.oecd.org/employment/emp/ageingandemploymentpolicies-statisticsonaverageeffectiveageofretirement.htm. Retirement-age data for Hong Kong is from the Hong Kong Civil Service Bureau and reflects the retirement age of civilian service officers of the Hong Kong government.

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Our experts

Nathan Zahm
Investment analyst
Investment Strategy Group
The Vanguard Group, Inc.

Steve Charlton
European defined contribution proposition manager
Vanguard Asset Management, Limited

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