This article uses the framework of designing a commercial aircraft to illustrate
how a personal defined-contribution (DC) pension plan should be designed if it
is to achieve its objective of delivering an adequate and secure retirement
pension. The article’s suggestions are based on similarities between a DC
pension plan and an aircraft journey. For example, the strategic investment
strategy is analogous to the aircraft, the plan provider is analogous to the
aircraft operator, the contributions are analogous to the fuel, and the
accumulation and decumulation stages are analogous to the climb and descent
stages of the flight. The significant differences that exist between the two
concepts are also highly instructive.