Outlook 2025: The pensions industry’s wishlist for the new year

Stewart Hastie, chair, Association of Consulting Actuaries

“A key priority is to unlock the considerable value that the £1.4trn of private sector defined benefit (DB) schemes can bring to the laudable aims of the Pensions Review, including supporting economic growth and creating funds to increase pensions savings.

“Filling the regulatory gap that exists for managing current and future DB surpluses, combined with greater flexibility for sponsors and trustees over their use, can help to unlock some £100bn to £250bn of value for business and members over the next 10 years and support a long-term view on pension scheme investment.

“Creating that virtuous circle includes a pragmatic approach being taken to legacy issues like the Virgin Media ruling, where government needs to urgently facilitate a pathway to resolve what is effectively a historical documentation issue.”

Sophia Singleton, president, Society of Pension Professionals (SPP)

“The SPP and its expert membership of pension professionals’ greatest priority for 2025 is to help the government make a success of the 2025 Pension Schemes Bill.

“This will mean supporting the government in delivering its objective of securing greater investment in UK productive finance assets while protecting savers financial security in retirement; delivering a proportionate yet effective Value for Money framework; working through the renewed policy proposals on options for DB schemes; and assisting with the development of retirement products.

“Working together in partnership, the SPP can help deliver for savers, industry, policymakers and UK companies.”

Tim Middleton, director of policy and external affairs, Pensions Management Institute

“A key objective is to persuade the government to adopt proposals from our Lifetime Savings Initiative into its Pensions Review. We would like to see auto-enrolment adapted to include a National Savings Plan that would help build up financial resilience by ensuring that pension savers would also have access to a ‘rainy day’ fund.

“An additional element would be the creation of a National Lifetime Savings Plan that would help savers pay for the deposit on a first home. These ideas would represent a significant improvement in the nation’s saving habits, and we are keen to see them come to fruition.”

Zoe Alexander, director of policy and advocacy, Pensions and Lifetime Savings Association

“Our policy priorities will, as ever, be driven by the association’s mission: to help everyone achieve a better income in retirement. In the context of 2025, that means helping to ensure the government’s two-part pensions review sets our system up to succeed.

“This includes communicating the industry’s needs and advocating for well-designed policy and regulatory interventions, as well as fiscal incentives that can help bridge the gap for investing more pension capital in the UK. It also means helping ensure policies aimed at creating a sector with fewer, larger funds, don’t create imbalances or destroy value.

“Most importantly, we want to see changes that mean the system consistently provides an adequate level of income in retirement. That means lobbying for implementing already legislated changes to auto-enrolment so that those aged between 18 and 22 are brought within scope, and workers start contributing to their pension from their first pound of earnings.

“In time, it also means higher contributions for the majority of savers – up to a total of 12% from the current 8% – with employers contributing half.”

Maggie Rodger, co- chair, Association of Member Nominated Trustees

“We would like to see three things:

“Trustees empowered to take decisions on behalf of members’ long-term interests, including managing systemic risks of sustainability and wellbeing of the economic and social community they retire into.

“Trustees working as part of diverse and inclusive boards, able to harness different skills, life experience and cognitive diversity.

“Pension schemes addressing the issue of adequacy of retirement income. Collective defined contribution schemes could address the weaknesses of current defined contribution models.”

Chris Curry, director, Pensions Policy Institute (PPI)

“The PPI is looking forward to engaging heavily with phase two of the government’s Pensions Review.

“While the government has said that the main focus will be on adequacy, it’s also important that the review is holistic and encompasses the fairness of the pensions system and its sustainability, alongside adequacy. Our evidence base will play a key role in supporting the review.”