Pensions - Articles - Comment from PwC on plans for Dutch-style pensions in the UK


 PwC comments on the pensions minister’s outlined plans to introduce Dutch-style collective pension schemes to the UK market.

 Peter McDonald, pensions partner at PwC, said:

 “While in theory collective investments should produce better outcomes for savers, in practice the picture is more complex. The challenge will be to manage people’s expectations and be clear that collective investments bring no guarantees. While many people currently trust the Dutch system to deliver more favourable outcomes, it’s equally possible that many could be left disappointed with final pensions that don’t meet their expectations.

 “It must be clear who pays the cost for what, including when payouts are not in line with set expectations. Without this clarity and simplicity, the Government’s intended aim of creating a strong savings culture and restored trust in pensions will not be achieved.

 "While we need to encourage a pensions system that improves outcomes for members, a copy and paste of the Dutch system is not necessarily the right answer for UK workers. The Dutch system was designed for a different generation; any transformation of the UK pensions system needs to be fit for tomorrow’s workers. This should include exploring a system that can cope with people releasing money early, a greater number of changes of employer, and gaps in employment.

 “Although employers may not jump at the chance to take on more risk compared to defined contribution pension schemes, this could be a real differentiator for companies wanting to attract the best people in the future as defined benefit pension schemes become a thing of the past.” 

Back to Index


Similar News to this Story

State Pension Age Review assumes triple lock remains
But could be ‘false comfort’ for younger generations. Continuing triple lock could come at the expense of further and faster increases to State Pensio
Comments on DWP papers and announcements
Hymans Robertson comments on the documents and papers announced by the DWP ahead of Phase Two of the Pensions Review.
Pensions Commission must rethink pensions from the bottom up
Peoples Pension, ACA, XPS and Hymans Robertson comment that the Pensions Commission must rethink pensions from the bottom up

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.