18 Dec XV FIAP International Seminar – Mexico City – October 2017

The Director of The Observatory of Demography and Generational Diversity, Mr. Rafael Puyol, attended the 15th FIAP International Seminar, held on October 30 and 31, 2017, in Mexico City, Mexico. FIAP is the International Federation of Pension Funds Administrators. He gave the lecture ‘FUTURE DEMOGRAPHIC TRENDS’ during the Section The challenges of an aging population.

This year the agenda was focus in three main topics regarding pension systems under defined contribution schemes.

1. Sustainability of pension systems

Experts from multilateral entities such as OECD and IADB commented on the benefits associated to the reforms that lead to defined contribution adoption schemes in several countries, the recent upgrade to those reforms and the challenges ahead to achieve sustainability in pension funds.

2. Facing the deaccumulation phase

Defined contribution systems were designed to payout to their affiliates the amount accumulated in their accounts once the retirement age is reached. However, as these schemes have evolved is more evident the need for investment strategies that link active working life with the retirement phase (decumulation) and pension options, focused on achieving adequate and stable income levels during the retirement.

3. Investment strategies and criteria of global pension funds

Global pension funds are adopting ESG criteria to ensure the sustainability of their investments also a big trend among pension funds is infrastructure investing as a tool to boost returns. In this framework, there is a tradeoff between outsourcing or insourcing investment.

The agenda can be consulted in the seminars website www.aforemx.org.