Actuaries urged to put outcomes first and help raise governance standards as pensions system becomes more complex. The UK pensions system is entering a new phase, with a growing focus on the outcomes members achieve in retirement rather than simply participation or accumulation.
Speaking at the Institute and Faculty of Actuaries’ 75th anniversary Chair’s Dinner, The Pensions Regulator (TPR) CEO Nausicaa Delfas set out how the role of actuaries is becoming increasingly central as the system evolves to meet this challenge.
While automatic enrolment has successfully brought millions more people into pension saving, Ms Delfas made clear that saving, on its own, is not the same as security, with too many members still on track for inadequate retirement outcomes.
She described the current system as “unfinished business,” highlighting the need to ensure that pension saving translates into sustainable retirement income.
A more complex system requires stronger actuarial judgement
Speaking at the event, Ms Delfas said: “Since the ACA began in 1951, a lot has changed...But one thing has remained constant: the value of actuarial judgement. You are strategic advisers, system designers, and trusted guides. Thanks to you, schemes, employers and members make decisions that will shape outcomes decades into the future.”
Delfas emphasised that pensions have shifted from a technical, back-office function to a core part of financial wellbeing and economic growth, increasing the importance of actuarial expertise. As the system becomes more complex, particularly in DC pensions, the need for clear, objective, and long-term actuarial insight will continue to grow.
She highlighted the shift in DC from accumulation to outcomes, with greater focus on retirement products, decumulation pathways, and value for money assessments that consider investment performance, costs and service quality.
Actuaries will play a key role in helping trustees:
design investment strategies that support growth, including productive finance
develop decumulation pathways that convert savings into reliable income
strengthen governance frameworks to ensure schemes are resilient and member-focused
Opportunities in DC and CDC reform
Delfas pointed to significant opportunities for actuaries as the DC market matures and policy reforms take effect, including the introduction of a guided retirement duty and a broader value for money framework. She highlighted the potential of collective defined contribution (CDC) schemes as a major innovation in UK pensions, offering a collective, risk-sharing model capable of delivering more stable outcomes for members.
However, she stressed that CDC will only succeed if it is “designed, governed, and communicated well,” requiring sophisticated modelling, clear risk-sharing mechanisms and strong governance. She said “CDC invites the profession to engage in system design, not just scheme design. It is an opportunity for you to help shape a new chapter in UK pensions.”
A call to focus on outcomes and raise standards
In an evolving pensions environment, Ms Delfas called on actuaries to keep long term outcomes front of mind in decision making, support trustees in navigating greater complexity, and help raise governance standards across the sector. She also emphasised the importance of actuarial independence and rigour, noting that actuaries play a critical role not only in technical analysis but in shaping the direction of the pensions system as a whole.
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