With the Pensions Commission’s interim report eagerly awaited, Paul Sweeting, president of the Institute and Faculty of Actuaries (IFoA), explains why it is so important to ensure savers have a voice when considering future reforms.
The arrival of spring 2026 has placed the UK pensions sector firmly in the spotlight, with the revived Pensions Commission on the cusp of publishing its eagerly awaited interim report.
This staging post document will establish a comprehensive evidence base and chart the strategic direction for tackling pensions adequacy, aiming to ensure the system delivers genuine financial security in retirement for future generations.
For seasoned observers of UK pensions policy, the core findings may not prove surprising. Automatic enrolment has been a resounding success in driving participation, yet contribution rates remain insufficient for many to achieve comfortable retirement outcomes.
Recent Institute for Fiscal Studies analysis highlights the scale of the challenge. Around 40% of private sector employees in defined contribution (DC) schemes are on track to miss the target replacement rate benchmark, which was originally set by the first Pensions Commission to prevent a drastic fall in living standards at retirement. The result is a looming financial cliff edge for millions, where retirement income fails to sustain pre-retirement lifestyles.
Easier said than solved
The solutions, however, are more nuanced than a straightforward increase in minimum contributions – although that will almost certainly be required. Lasting reform demands a systemic, multi-layered response involving government policy, regulatory frameworks, employer practices, industry innovation, and crucially, changes in individual behaviour and engagement.
This final element, putting the voice of the pension saver at the heart of reform, deserves far greater emphasis. Pensions policy is riddled with difficult trade-offs. These include balancing higher saving levels against current affordability, shifting risks between individuals, employers, and the state, and ensuring fairness across generations, income groups, and life stages.
These are not abstract debates; they directly affect people’s lives, wallets, and sense of security. Excluding the perspectives of those who will live with the consequences risks reforms that feel imposed rather than owned, potentially undermining trust, uptake, and long-term legitimacy.
Early this year, in a piece for Pensions Expert, I argued that the government’s financial inclusion strategy misses a trick by sidelining pensions. Could it be that any meaningful pensions overhaul will fall short if it ignores the lived experiences, values, and preferences of pension savers? For example, how do people weigh the trade-offs between saving more now or using the money to buy a home? Or, importantly, to reduce debt? What feels fair in sharing responsibility among individuals, employers, and the state? Whose voices are missing from current policy conversations?
Constructing a ‘citizens’ assembly’ for pensions
Encouragingly, progress is underway. The IFoA, in partnership with Standard Life, Nest, Pensions UK, and the People’s Partnership, is supporting the New Citizens Project to explore the feasibility of a citizens’ assembly, or similar deliberative process, to inform the Pensions Commission’s work.
Such mechanisms – bringing together a diverse, representative group of people to learn from experts, deliberate trade-offs, and develop recommendations – have proven effective on complex issues elsewhere. Applied to pensions, they could help surface public views on adequacy targets, contribution levels, risk-sharing, and fairness.
For change to work and gather support it must feel fair and inclusive. As the interim report lands and debate intensifies, 2026 stands as a potential turning point. The Pensions Commission has a rare opportunity to not only diagnose the adequacy gap but also perhaps use participatory approaches that embed the voice of the pension saver.
The question is no longer just what needs to change, but how we ensure those affected shape and respond to that change.
Paul Sweeting is president of the Institute and Faculty of Actuaries.
