Blending Growth, Income, and Protection to Create Default Post-Retirement Solutions for Australia and Hong Kong

Abstract

With populations aging, governments, providers, and sponsors are increasing their focus on post-retirement solutions. The ideal approach is to tailor a solution to an individual’s circumstances, but this is generally not practical in a mass market—so creating a default solution that is suitable for the majority, if not all, has become the aim. This paper looks at examples from Australia and Hong Kong, where recent policy announcements about a desire to improve outcomes for retirees provide interesting case studies. Taking state pension provisions into consideration, we find that retirees need a combination of protection and growth in order to deliver the income required for a comfortable retirement.