In The Quadrillion Dollar Bridge: Retirement Behaviour, author Josef Pilger delves into the complex landscape of retirement, systems, decisions, planning, behaviours and outcome expectations providing vital guidance for policymakers, individuals, retirement and financial services providers. This book addresses the complex challenges consumers, policymakers and providers face today, from navigating investments to making informed decisions that affect the retirement lifestyle for millions. With Pilger's extensive experience in the global retirement and financial services sector, he offers practical solutions designed to empower readers for a more secure financial future.
Packed with research-based insights and actionable strategies, the book dissects the evolving retirement landscape - highlighting how you can better navigate the shift from defined benefits to individualized plans and what he calls “Retirement 2.0”. Readers will learn how to make informed choices that improve their retirement systems, delivery and outcomes, ensuring they achieve lasting peace of mind.
Inside the book: - Discover how understanding behavioural psychology can reshape investment strategies - Learn best practices to maximize retirement savings, systems and outcomes - Explore the interconnectedness of health, wealth, longevity and career decisions in planning for the Golden Years
The Quadrillion Dollar Bridge: Retirement Behaviour is a must-read for policymakers, financial services providers, pension fund professionals, and financial advisors eager to enhance their clients' retirement planning experiences. Empower yourself and your clients today with the knowledge needed to thrive in a complicated financial landscape.
Table of Contents
Contents Foreword 5 Author’s Foreword 6 Section A: Framing Context Retirement System Objectives: Purpose and Cultural Framing Expectations 10 Problem: What problem? The governance and fiduciary duty 14 Retirement System Parameters 16 Section B: Retirement and Financial Well-being Ecosystem The Financial Well-Being Ecosystem 23 Retirement Decision Map 25 The Unavoidable Statistical Section 27 The Retirement Memories-Map 28 Why are Retirement Decisions so Hard? 30 Financial Literacy and Financial Advice as Silver Bullets? 34 What can we learn from Human Evolution? 37 Intergenerational Wealth Transfer 45 Behavioural Economics - Progress at Last? 46 Retirement Success 47 Financial Planning Success 51 Section C: Transform Retirement 2.0 - Defining the Crucial Challenge(s) The New Brand of Retirement 2.0 55 The Foundation of Success in Retirement 2.0 57 Transform: How can we see what others don’t? 60 A Policymakers’ Balanced Scorecard for Retirement 2.0 61 Longevity's Impact on Governments 64 Section D: Transform Retirement 2.0 - Breaking Down the Challenge(s) Break Down the Challenge and Challenge Statement 76 Compare Stakeholders’ Perspectives and Wants 83 Section E: Transform Retirement 2.0 - Search Within the Sector Searching for Best Practices from Australia 103 Searching for Best Practices from the Netherlands 104 Searching for Best Practices from Denmark 104 Searching for Best Practices from Hong Kong 105 Searching for Best Practices from Malaysia 105 Searching for Best Practices from the US 106 Searching for Best Practices from Canada 107 Searching for Best Practices from Chile 108 Searching for Best Practices from India 109 Searching for Financial Advice Best Practices in the UK and Australia 110 Selected Key Learnings from within the Global Retirement Ecosystem 115 Section F: Think Bigger for Retirement 2.0 - Search Outside of the Sector The Search for Better Attraction and Engagement 118 The Search for More Learning About Customer Attraction at Scale 120 Search for Financial Security-Centric Retirement Advice Learnings 122 Search for Better Enablement and Decision for Retirement Learnings 126 Search for Learnings for a Better Ecosystem and a “Fulfilled Life” 129 Learning About the Illusion of Validity 130 Search for Better Government and Policymaker Interventions 131 Learnings from the Global COVID Vaccine Journey 132 Learnings from the Implementation of Obama Care 134 Learnings from the Kingdom of Saudi Arabia’s Vision 2030 Journey 135 Section G: Think Bigger for Retirement 2.0 - The Options Map Evolving the Options Map Pragmatically 137 Shift 1: From Retirement 1.0 to 2.0 and ‘Fulfilled Life” Transformation 139 Completing Commensurate Implementation of Retirement 1.0 139 A Practical Solution for Gig, Self-employed (GEPs) and the Future of Work 140 What Does Retirement 1.1 Mean? 140 The Shift to Retirement 2.0 141 What Aspects Should Be Included in Financial Security for Retirement 2.0? 142 What is the Magic Answer? 143 The Shift to a “Fulfilled Life” Approach 144 Shift 2: From Incremental to Transformative Outcome Architecture 144 Shift 3: From Process and Choice to Saver Outcome Architecture 146 Shift 4: From Process to Outcome Governance 149 Shift 5: From Process and Product to Value-Chain Architecture 153 Seamless Data Access and Integration of Government Pension and Support Systems 157 Integration of Home Ownership 157 Seamless Data Access and Integration of Health and Other Relevant Areas 157 Shift 6: From Financial Planning to Advice Outcome Architecture 159 Pressure to Shift from Good to Best-Saver Interests Has Emerged 160 Fee and Price Sensitivity Emerged on a Different Level 161 Demand and Context for Financial Planning and Advice 161 Supply of Financial Planning and Advice and Context 164 Accumulation, Decumulation, and Longevity Converged at Scale 168 Focus on Vulnerable Cohorts and Literacy at Scale Arose 169 Focus Shifted to Outcomes Rather than Process 170 The Political Test: The $1 Quadrillion Prize of Value Generation 172 Section H: What Do the Six Shifts Mean More for the Golden Years? Framing the Conversation 174 Framing Success 176 The Australian Retirement System 178 Outcome Scope for Retirement 1.0: Complete the Jigsaw 179 Outcome Scope for Retirement 2.0: Thinking About the Inevitable Tough Questions 181 Transformative Policy Outcomes 182 Outcome Architecture 182 Financial Planning and Advice Architecture 184 The German Retirement System 185 Outcome Scope for Retirement 1.0 and Transformative Policy Outcomes 186 Outcome Architecture 187 The Dutch Retirement System 188 The UK Private Retirement System 189 The US Private Retirement System 191 Where Are We Today? 191 The Way Forward 194 Section I: Leadership Interviews Intro 197 Australia: David - 500 - 1000 Words 197 Germany: Heri 197 UK: Jamie 197 US and Global: Nikki 197 Global: Andrew 197 Section J: Conclusion 197 Table of Charts, Tables, and Figures 200 References and Endnotes 200 Contents
Foreword 5
Author’s Foreword 6
Section A: Framing Context
Retirement System Objectives: Purpose and Cultural Framing Expectations 10
Problem: What problem? The governance and fiduciary duty 14
Retirement System Parameters 16
Section B: Retirement and Financial Well-being Ecosystem
The Financial Well-Being Ecosystem 23
Retirement Decision Map 25
The Unavoidable Statistical Section 27
The Retirement Memories-Map 28
Why are Retirement Decisions so Hard? 30
Financial Literacy and Financial Advice as Silver Bullets? 34
What can we learn from Human Evolution? 37
Intergenerational Wealth Transfer 45
Behavioural Economics - Progress at Last? 46
Retirement Success 47
Financial Planning Success 51
Section C: Transform Retirement 2.0 - Defining the Crucial Challenge(s)
The New Brand of Retirement 2.0 55
The Foundation of Success in Retirement 2.0 57
Transform: How can we see what others don’t? 60
A Policymakers’ Balanced Scorecard for Retirement 2.0 61
Longevity's Impact on Governments 64
Section D: Transform Retirement 2.0 - Breaking Down the Challenge(s)
Break Down the Challenge and Challenge Statement 76
Compare Stakeholders’ Perspectives and Wants 83
Section E: Transform Retirement 2.0 - Search Within the Sector
Searching for Best Practices from Australia 103
Searching for Best Practices from the Netherlands 104
Searching for Best Practices from Denmark 104
Searching for Best Practices from Hong Kong 105
Searching for Best Practices from Malaysia 105
Searching for Best Practices from the US 106
Searching for Best Practices from Canada 107
Searching for Best Practices from Chile 108
Searching for Best Practices from India 109
Searching for Financial Advice Best Practices in the UK and Australia 110
Selected Key Learnings from within the Global Retirement Ecosystem 115
Section F: Think Bigger for Retirement 2.0 - Search Outside of the Sector
The Search for Better Attraction and Engagement 118
The Search for More Learning About Customer Attraction at Scale 120
Search for Financial Security-Centric Retirement Advice Learnings 122
Search for Better Enablement and Decision for Retirement Learnings 126
Search for Learnings for a Better Ecosystem and a “Fulfilled Life” 129
Learning About the Illusion of Validity 130
Search for Better Government and Policymaker Interventions 131
Learnings from the Global COVID Vaccine Journey 132
Learnings from the Implementation of Obama Care 134
Learnings from the Kingdom of Saudi Arabia’s Vision 2030 Journey 135
Section G: Think Bigger for Retirement 2.0 - The Options Map
Evolving the Options Map Pragmatically 137
Shift 1: From Retirement 1.0 to 2.0 and ‘Fulfilled Life” Transformation 139
Completing Commensurate Implementation of Retirement 1.0 139
A Practical Solution for Gig, Self-employed (GEPs) and the Future of Work 140
What Does Retirement 1.1 Mean? 140
The Shift to Retirement 2.0 141
What Aspects Should Be Included in Financial Security for Retirement 2.0? 142
What is the Magic Answer? 143
The Shift to a “Fulfilled Life” Approach 144
Shift 2: From Incremental to Transformative Outcome Architecture 144
Shift 3: From Process and Choice to Saver Outcome Architecture 146
Shift 4: From Process to Outcome Governance 149
Shift 5: From Process and Product to Value-Chain Architecture 153
Seamless Data Access and Integration of Government Pension and Support Systems 157
Integration of Home Ownership 157
Seamless Data Access and Integration of Health and Other Relevant Areas 157
Shift 6: From Financial Planning to Advice Outcome Architecture 159
Pressure to Shift from Good to Best-Saver Interests Has Emerged 160
Fee and Price Sensitivity Emerged on a Different Level 161
Demand and Context for Financial Planning and Advice 161
Supply of Financial Planning and Advice and Context 164
Accumulation, Decumulation, and Longevity Converged at Scale 168
Focus on Vulnerable Cohorts and Literacy at Scale Arose 169
Focus Shifted to Outcomes Rather than Process 170
The Political Test: The $1 Quadrillion Prize of Value Generation 172
Section H: What Do the Six Shifts Mean More for the Golden Years?
Framing the Conversation 174
Framing Success 176
The Australian Retirement System 178
Outcome Scope for Retirement 1.0: Complete the Jigsaw 179
Outcome Scope for Retirement 2.0: Thinking About the Inevitable Tough Questions 181
Transformative Policy Outcomes 182
Outcome Architecture 182
Financial Planning and Advice Architecture 184
The German Retirement System 185
Outcome Scope for Retirement 1.0 and Transformative Policy Outcomes 186
Outcome Architecture 187
The Dutch Retirement System 188
The UK Private Retirement System 189
The US Private Retirement System 191
Where Are We Today? 191
The Way Forward 194
Section I: Leadership Interviews
Intro 197
Australia: David - 500 - 1000 Words 197
Germany: Heri 197
UK: Jamie 197
US and Global: Nikki 197
Global: Andrew 197
Section J: Conclusion 197
Table of Charts, Tables, and Figures 200
References and Endnotes 200
