On the go: Securing a policy regime that guarantees an adequate retirement income for most savers will sit at the top of the Pensions and Lifetime Savings Association’s list of priorities this year, it has announced, with the industry body advocating for the expansion of auto-enrolment.
The PLSA revealed that it intends to publish a report tackling the topic of pension adequacy and auto-enrolment reform later this year. Until then, it will hold the government’s feet to the fire over pledges it made after the 2017 automatic enrolment review.
These commitments included introducing a timeline to implement pension savings on the first pound of salary, and for the expansion of auto-enrolment to include 18 to 21-year-olds by the mid-2020s.
The PLSA will also lobby to increase contribution levels to 12 per cent by 2030, with an even split between employer and employee.
“This year we expect government and parliament to be undertaking some longer-term thinking on auto-enrolment and the right regime for pensions,” Nigel Peaple, the PLSA’s director of policy and advocacy, said.
The body’s other high-priority work will include helping the industry to prepare for the introduction of pensions dashboards, which are expected to be launched in 2023.
It will also champion the industry in response to the Pensions Regulator’s proposed defined benefit pension funding reforms, as well as providing guidance to schemes on responsible investment and stewardship in the aftermath of last year’s COP26 climate summit.
The PLSA’s remaining key areas of focus will see it publish research on the main challenges facing local government pension schemes, and advocating for reforms to defined contribution schemes, which will include proposals to compel schemes to support their members in choosing products as they draw their pensions.
“We will be making the case that pensions can play a key role in [the government’s] levelling-up agenda,” Peaple said.
“As with last year, we expect a wave of further regulatory initiatives, not least on DB funding, pensions dashboards and [Task Force on Climate-related Financial Disclosures] reporting.”
