Pension scheme trustees as surrogate decision makers

Pension trustees make surrogate decisions on behalf of scheme members. However, prior research has not explored how this might affect pension adequacy. Our results show that when setting targets for replacement income, project their own preferences instead reflecting member preferences. Furthermore, projection was more pronounced with lower financial literacy. Trustees choose significantly higher rates members than themselves. also current benchmarks. The economic consequences are potentially considerable, due to high levels contributions and incompatible risk-taking. A better understanding the dynamics made by is needed ensure outcomes.