Teach-in DC/Age of Responsibility 14 July 2015 1

Big Picture• Aging

population• Dependency

ratio falling• People are

not saving enough

Teach-in DC/Age of Responsibility 14 July 2015 2

Teach in: DC Investment Strategy in the ‘Age of Responsibility’

Teach-in DC/Age of Responsibility 14 July 2015 3

Teach-in DC/Age of Responsibility 14 July 2015 4

Teach-in DC/Age of Responsibility 14 July 2015 5

“People need to save more”

• A savings culture and system• Ensure a “living wage” in

retirement• Most people• By 2035

Save 15%!

Teach-in DC/Age of Responsibility 14 July 2015 6

E A S T

TimelySocial

Attractive

Easy

Teach-in DC/Age of Responsibility 14 July 2015

Teach-in DC/Age of Responsibility 14 July 2015 8

Who are “most people”?

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 970

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Distribution of UK Incomes (Tax Payers Only)

Teach-in DC/Age of Responsibility 14 July 2015 9

What is a “living wage” in retirement?£15k a yearRequires a pension “pot” of £200kContributions Required:  Salary

Age started saving: £20,000 £30,000 £50,00020 12% 8% 5%30 17% 12% 7%40 26% 18% 11%50 45% 30% 18%60 112% 75% 45%

Teach-in DC/Age of Responsibility 14 July 2015

Auto Enrolled Pension

ISA

State Pension

Home Ownership

• More Timely => Like “Help to Buy”

• Easier & More Social => Workplace ISA

• Easier & More Social => Source of Retirement Income

• More Attractive => E-E-E• Less Cost => Annual

Allowance £5k & Flat Tax

Teach-in DC/Age of Responsibility 14 July 2015

• More Timely => Like “Help to Buy”

• Easier & More Social => Workplace ISA

• Easier & More Social => Source of Retirement Income

• More Attractive => E-E-E• Less Cost => Annual

Allowance £5k & Flat Tax