The issue of pension financing is evolving everywhere, becoming more of a collective corporate or purely individual matter rather than a State one. Demographic changes are making sharing mechanisms hard to control, and social deficits are leading to States often pulling back from their obligations. The responsibility is therefore gradually being transferred from Society to savers, who will have to assume an increasing responsibility for constituting their supplementary pension during the period after retirement.

However, doing so is not a formality. Individuals are often badly prepared to face up to these issues and several asset management-related matters are complicated by the specific characteristics of a pension plan. Many different questions will arise throughout the saver's life. At what age should I start saving? When should I increase or reduce my savings? What products should I choose? What degree of risk should I take on? Are there more favourable underlyings, e.g. property? How do I secure my income? Should I choose an annuity or a capital sum? What insurance products are available to protect my savings?

The use of a differential in the taxation of products and the implementation of asset packages must also be considered. However, the investment strategy is probably what still takes priority in this very long savings process.

This publication, which is intended for investment professionals, customer advisors, well-informed individuals or students, looks at some of the fundamental elements of investment techniques for retirement.

Franck NICOLAS has 27 years of professional experience in investment management and is currently head of Investment and Clients Solution at Natixis Asset Management. He holds a Ph. D in Economics from the University of Aix-en-Provence, a Ph.D in Management from the University of Paris 1 Panthéon-Sorbonne, and an MBA from HEC Business School in Geneva.