Daniel McLaughlin, UK Country Head at Festina Finance, commented: “If we’re serious about adequacy the conversation needs to be bigger than whether 12% contributions are enough, we need to stop tweaking and start transforming. It is really encouraging to see the long-term and structural scope of the Pensions Commission. This broad scope gives the Commission the ability to think about these structural and systemic issues. In countries high on the Mercer Index, contribution rates exceed 20%, coverage typically sits above 90%, and average earners retire with replacement rates of 70–85% and up to 100% for lower earners. These outcomes haven’t happened by chance, they’re the result of intentional design; strong policy frameworks, a strong digital infrastructure, collective agreements and, crucially, a shared national commitment to adequate retirement income. These systems don’t just enrol people; they ensure outcomes are meaningful. One key lesson is to shift focus from building pots to generating income. In some European systems, the mindset is different. People save with income in mind from day one, and not just to accumulate capital. That subtle shift in framing leads to better decision making throughout the retirement journey. As an industry, we have the collective responsibility to encourage this shift toward income. Adequacy also goes beyond pensions alone. For instance, in parts of Europe, vulnerable citizens in receipt of the equivalent of the State Pension are automatically assessed for housing benefit via a digital system. It’s integrated, efficient, and dignified. That’s what adequacy should look like for people in practice.”
“The UK has a proud record of pioneering auto-enrolment. Now we need to raise the bar. We must redefine what adequacy really means, design with outcomes in mind, and build a system that delivers a dignified retirement outcome, not just savings, for all. Adequacy in the UK needs a structural reset, and not just another percentage point.”
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