Social Market Foundation’s Post

New report from the Social Market Foundation and Cushon reveals strong support for a pension pot for life, but identifies the challenges that must be addressed and the policy and industry infrastructure that must be in place for it to succeed....

Why is Legal & General keen to be a first mover in delivering its own pensions dashboard to its members? We asked Lisa Gotsinas at our webinar last week ⬇️ "As the number one DC provider in the UK pensions market, it was never really in doubt. The question was how we would do it, not if we would do it. It's obviously very important for us to be leading the way in dashboards. We strongly believe that we have that duty of care to our customers to ensure that they better understand their options at retirement. And this service helps to complete that holistic picture for our members, ultimately helping them focus on adequacy for their later years. We're well aware that people change jobs frequently these days, but up to 11 times in their career - that's quite an astonishing statistic that we're seeing evolve, and that this so far has resulted in around 2.8 million lost pots that are worth up to 27 billion pounds. Those are huge numbers. Those are numbers that we can't even really understand. And that's a lot of money that evidently the UK population would benefit from being reunited with to help them with their future lives." Access the replay https://lnkd.in/eCVRccHZ #PensionsDashboards

The government has published statutory guidance setting out the staged timetable by which it expects pension schemes to connect to the Pensions Dashboards. Jonathan Watts-Lay, Director, WEALTH at work comments; “The upcoming Pensions Dashboards will no doubt be a useful tool for employees, especially for those who have worked several jobs and have pensions from various employers. With the launch of the Pensions Dashboards approaching there is potential to develop this into ‘Open Finance’ which is an extension of Open Banking. This could give people a holistic view of all their finances to consider all savings and investments, which would be particularly useful when planning for retirement...” Read more by clicking here: https://rb.gy/eh6oom

For a large portion of the population the state pension represents absolutely crucial retirement income and is the most significant financial 'transaction' they will make during their lifetimes. Let's say, then, that people who are receiving, or who will receive, state pensions are clients of the government. And let's also say that the government is and has been subject to regulations that govern how financial service providers interact with their clients. Considerations such as vulnerability, suitability, treating customers fairly and consumer duty would then apply to state pensions. Let's then think how the situation described here might have panned out.... https://lnkd.in/eygEP2-2

With strong stock performance and declining interest rates, this month marks another boost for pensions. In our Pension Finance Update, we also focus on the Senate HELP Committee's efforts to enhance DB plans in the private sector, ensuring American workers have guaranteed lifetime income. 👉 Listen to the full update: https://hubs.la/Q02z-s4P0

One of the most important benefits of introducing AI into pension products could be in improving the customer experience and boosting member engagement 📈 This has been a long-term problem for the industry, with recent research released by the Pensions Dashboard Programme finding that 55% of adults aged 18 to 75 have had no engagement with their pensions over the past year 😕 Find out the solution here: https://lnkd.in/e5tqNUaS

Why is Legal & General keen to be a first mover in delivering its own pensions dashboard to its members? We asked Lisa Gotsinas at our last webinar ⬇️ "As the number one DC provider in the UK pensions market, it was never really in doubt. The question was how we would do it, not if we would do it. It's obviously very important for us to be leading the way in dashboards. We strongly believe that we have that duty of care to our customers to ensure that they better understand their options at retirement. And this service helps to complete that holistic picture for our members, ultimately helping them focus on adequacy for their later years. We're well aware that people change jobs frequently these days, but up to 11 times in their career - that's quite an astonishing statistic that we're seeing evolve, and that this so far has resulted in around 2.8 million lost pots that are worth up to 27 billion pounds. Those are huge numbers. Those are numbers that we can't even really understand. And that's a lot of money that evidently the UK population would benefit from being reunited with to help them with their future lives." Access the replay https://lnkd.in/eCVRccHZ #PensionsDashboards

As we look ahead to the Budget, in partnership with Opinium, we have carried out research into attitudes towards and understanding of financial literacy, pensions, and investing across the UK. Our research has found that concerns around retirement grow with age, but younger generations are already reporting higher engagement with and investment into their pensions. As part of our Budget submission we have therefore urged the Chancellor to focus on creating a culture of inclusive investment to improve UK households' financial resilience. This includes boosting pension growth and building on the success of auto-enrolment by recognising that contribution levels of 8% are not high enough for most people, and act now to look at appropriate saving rates for different groups, including the self-employed. To find out more: https://lnkd.in/e-Ma43Fe

💼 Is £1 Million Enough for Retirement? In the evolving landscape of pensions, the question remains: is £1 million sufficient? The Pension Schemes Act 2021 aimed to empower The Pensions Regulator (TPR) with stronger deterrents against corporate negligence impacting pensions. While new penalties and offences were introduced, their effectiveness as a deterrent is still under scrutiny. Despite not being used extensively, TPR's new powers have influenced corporate behavior positively. The debate continues on whether these measures truly protect pension savers or if more robust actions are needed. 🔗 Read more #PensionsLaw

Join us on our upcoming topical issues webinar to find out about the new General Code, what you need to do to get ready for the LTA abolition and the other developments you need to be aware of for the year ahead... #pensions #trustees #db #dc