Private Retirement Systems and Sustainability: Insights from Australia, the UK, and the US
Wharton Pension Research Council Working Paper No. 2021-11
Published in Hammond, P.B., R. Maurer, and O.S. Mitchell (Eds.) (2023). Pension Funds and Sustainable Investment: Challenges and Opportunities. Oxford: Oxford University Press.
Posted: 15 Jul 2021 Last revised: 19 May 2023
Date Written: July 1, 2021
Retirement system sustainability is defined as the ability of plan boards and managers to be responsible investors, active stewards, and allocators of capital to economic activities with desirable social and environmental outcomes. In this paper, we examine the policy frameworks and important structural variables pertinent to private retirement systems in Australia, the UK, and the US. By analyzing various reports, interviewing experts, and using data from the Principles of Responsible Investment as well as national pension and retirement authorities, we identify key structural challenges within national retirement systems. These include market fragmentation, principal-agent conflicts in personal pensions, and the role of service providers. Our results provide insight into how, or whether, retirement systems can facilitate desirable economic, social, and environmental outcomes.
Keywords: Retirement System, Sustainability, ESG, Sustainable Finance, Financial Regulation
JEL Classification: G18, G23, Q01
Suggested Citation: Suggested Citation