GLOBAL - French employers currently have no incentive to voluntarily offer defined benefit (DB) schemes to their employees, the director general of the French association of asset managers has said.
"That could be an incentive they could use in such a situation, but definitely I don't see it coming right now."
Bollon said governments would hesitate in future to increase retirement provisions granted by employers, in an attempt to avoid further charges to companies.
In such a scenario, he claimed the Plan d' épargne pour la retraite collectif (PERCO) - a locked in savings account, which can be used for retirement purposes - would be boosted as a form of defined contribution (DC) plan.
Currently, he added, PERCOs have €1.5bn (US$1.9bn) under management.
National Association of Pension Funds (NAPF) chief executive officer Joanne Segars said the launch of Personal Accounts in 2012 in the UK could create the biggest DC scheme in the world.
She pointed out Personal Accounts were introduced to tackle the problem that employees were not saving for their retirement, which was what she regarded as the crucial problem in the UK.
Highlighting also the need for further education, Segars added: "We just know members don't know enough. There is a job to be done to have members understanding more."
Fiona Stewart, administrator at the organization for Economic Co-operation and Development (OECD), said that when pension coverage was analysed, data often failed to capture a snapshot of systems as a whole.
She added: "In some countries the private pension sector is extremely small. That shows people do not realise how state pensions will be declining in the future."
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.