The Pensions Management Institute (PMI) has today published its response to the Pensions Commission's Interim Report, welcoming its thoughtful approach to tackling retirement adequacy while urging policymakers and the pensions industry not to delay action that could benefit savers today.
In its response, the PMI highlights the importance of building any future pensions settlement on the principles of simplicity, stability and savers. It calls for a long-term framework that gives members confidence, enables employers to continue investing in good pension provision and allows schemes to innovate responsibly.
The PMI supports the Commission's ambition to improve adequacy, fairness and sustainability across the UK pensions system. However, it argues that meaningful progress can be made now through practical industry-led changes, without waiting for major legislative reform or the Commission's final recommendations.
Today's adequacy challenges are already affecting millions of savers, the PMI says, and points to a range of improvements that could be progressed immediately, including better member communications, stronger retirement support, improved transfer processes and more robust oversight of default investment strategies.
Helen Forrest Hall, Chief Strategy Officer at the PMI, said: "The Pensions Commission is right to take the time needed to develop a lasting consensus on the future of pensions. But while that longer-term vision is being shaped, savers cannot afford to wait.
“There are practical steps the industry, employers and pension professionals can take now to improve retirement outcomes, strengthen engagement and support better decision-making. These actions do not require new mandates, they require leadership, collaboration and a shared commitment to putting savers first.
“The next phase of pensions reform must be built on simplicity, stability and trust. If we create a system that people understand and have confidence in, we will be far better placed to close the adequacy gap and deliver the retirement outcomes people deserve."
Financial resilience is key
The PMI's response also highlights the growing importance of wider financial resilience, including the impact of housing costs, insecure employment and short-term savings needs on people's ability to save for retirement. Drawing on evidence from its Lifetime Savings Initiative, the Institute argues that retirement adequacy cannot be considered in isolation from broader financial wellbeing.
As the Commission continues its work, the PMI has offered to convene pension managers, trustees, administrators, independent governance committees and employers to provide practical operational insight into how future reforms can be successfully delivered.
The Institute believes practitioner expertise will be vital in ensuring that any future reforms work not only in theory but in practice, helping to create a simpler, more coherent and saver-centred pensions system.
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