OECD warns against too conservative pension investment strategies – The Irish Times

Pension regulators should avoid setting guidelines that lead to default investment strategies that are too conservative, reducing the retirement income of workers, a new OECD report has found. Investing in the shares of listed companies tends to bring better retirement income outcomes, it says.

The OECD Pensions Outlook 2024 examines pension systems across the world’s most developed economies including Ireland.

It says that pension funds need investments in equities to represent a significant share of the portfolio of defined contribution (DC) pensions – pensions where the return is decided by the amount invested and the performance of those investments.

Equity investment has been rising steadily over the past 20 years, it finds,…

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