Choice Architecture and Pension Communication in Australia, Denmark, and the Netherlands

Pension systems are becoming increasingly more complex in several important ways. First, multi-pillar arrangements require understanding of the role and interaction of public and private pillars which often have mandatory, occupational and voluntary components. Second, the greater emphasis on defined contribution arrangements has led to more a complicated choice architecture featuring increased opportunities for choice by pension fund participants. Third, retirement income provision increasingly includes use of non-pension household wealth such as financial assets and home equity.

This research project aims to examine the role of pension communication to address pension system complexity and facilitate better member outcomes by comparing and contrasting the forms of pension communication and its impact on the choice behaviour of pension fund participants in three of the top-ranked pension systems in the world – Australia, Denmark and the Netherlands (Mercer & CFA Institute, 2023) – each with slightly different approaches to choice architecture and pension communication, as well as the use of non-pension assets to support retirement.