The study has been conducted in partnership with LifeSight and Aware Super and follows Thinking Ahead’s peer study project in 2018 which was published in the report Shifts for the DC organisation of tomorrow.
The Global DC Peer Study includes in-depth examination of 20 prominent DC organisations globally representing over $2tn of influential capital, which is important to the futures of people and planet. The study covers six countries and wide range of asset sizes, and aims to identify trends, regulatory shifts, and operational differences that have emerged over time, and that could be taken up in different regions.
Overall, this peer study reflects a DC sector that is evolving. The systems are getting bigger. The stakes are getting higher. And the need for a truly integrated, end-to-end pension experience, one that supports people not just in saving, but in living well after they stop working, has never been more urgent.
20 ORGANISATIONS, ONE SHARED AMBITION FOR BETTER DC
The peer group at a glance
ONE SYSTEM, THREE PERSPECTIVES
Key findings
Explore the findings through three lenses
The study examines DC through three interconnected perspectives.
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Individual
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Retirement income challenge
Decumulation needs innovation. Peers are trialling hybrids, defaults and CDC models. Decumulation expectations vary by region.
- 60% flagged it as the top challenge for the next decade.
- Retirement income needs to be addressed as part of whole-of-life optimisation, with an appropriate level of risk-taking across accumulation and decumulation.
Engagement and literacy
Individual decision making can improve or worsen pension adequacy.
- The majority of peers believe improving member understanding is a top five-year priority.
- Financial research suggests education can improve individual decision making if provided shortly before the decision. Its effect declines over time.
- Some peers believe better defaults need to also supplement this approach.
Balancing choice and default
Peers discussed the benefits and roles of defaults and choice.
- Organisations differ in their preferred balance reflecting their beliefs, member needs and regulatory context.
- Rather than a single right answer, peers highlighted the importance of clarity about the role each element plays in supporting good outcomes.
Accumulation design
There are mixed views on current lifecycle designs, with some seeing scope to revisit early-career risk settings and the pace of de-risking.
- The risk budget should be time-dynamic, reflecting members’ changing capacity to bear risk, especially as human capital declines with age.
- Effective systems combine strong defaults with supported choice, using clear guardrails and guidance.
Organisation
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Private markets
Average peer allocation 19% to alternatives, but markedly different between Australia (27%) and rest of world (16%). Australia’s DC started when infrastructure assets were being privatised.
- Private markets are desired, but most DC organisations compete on cost.
- Governance and operational readiness are further barriers.
Governance and culture
94% of organisations said that the governance of the Board and senior leadership in their organisations is strong and effective.
- The high score prompted discussion among peers. They suggested (1) surveys are generally completed by investment people, and (2) providing retirement income could introduce more tension.
DC service delivery
Service delivery is a growing pressure point. Member expectations of digital experience make DC payments and processing look slow.
- This operational friction risks undermining member trust and satisfaction.
- Cybersecurity is undervalued and ranked low in participant concerns. This was flagged as a potential blind spot.
System
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Systemic risk
67% of peer participants have committed to net zero. 50% also have the ambition to address inequality and biodiversity loss.
- The commitments are well-thought-through and pragmatic.
- Systemic risks cannot be fully addressed by DC organisations or our industry alone. Meaningful progress requires coordinated action from governments, regulators, and broader society.
Scale and consolidation
Lines of best fit through the survey data show cost advantages to increasing scale.
- 63% of pension assets in Australia are managed by 8 super funds. In the UK, 5 master trusts hold 60% of trust assets.
- Some peers noted the benefit of maintaining a diverse DC landscape, through competition, innovation and differentiated propositions.
Technology on the rise
We estimate the peers, on average, allocate 16% of their total spend to technology. Half the peers expect their spending on tech to grow over the next 5 years.
- In early 2025, 75% of the peers were thinking about AI, and almost 33% had pilots or projects.
- In 3 to 5 years, 40% believe AI will be integral and foundational for their organisation.
CONCLUSION
A fit-for-future DC industry: current assessment and 2035 opportunities
At Thinking Ahead, we believe any pension system must have four
core design elements of security, affordability, sustainability (intergenerational financial fairness) and systemic resilience through time that helps deliver better member outcomes.
We assessed the current state of DC industry across these elements using a traffic-light (red/amber/green) framework. This is a directional lens, not a scorecard, recognising material differences by region, maturity, and regulatory context.
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THREE ERAS OF DC
A framework for progress: DC 1.0, 2.0 and 3.0
savings
provision
wealth
Tax-efficient workplace savings
DC 1.0 is designed to build up a pot up to retirement date — then largely hands the member over.
Post-retirement income provision
DC 2.0 is a more integrated system that combines accumulation and decumulation into a single model for reliable income members can depend on.
Integrated whole-of-life wealth management
DC 3.0 knows each member’s complete financial picture and hyper-customises strategy to individual goals at every life stage.
The challenges facing DC organisations are complex, yet what stands out is the willingness to share and progress collectively.
Jessica Gao,
Director, Thinking Ahead
The growth in size and professionalism of DC organisations over the last seven years is really quite remarkable. What is constant is a very strong commitment to the individuals they serve. It is genuinely impressive.
Marisa Hall,
Head of the Thinking Ahead Institute
