Pensions solutions for policy makers and society

Eversheds Sutherland launches its Future of Pensions Report

Global top 15 law firm, Eversheds Sutherland, in conjunction with research company, Winmark, has launched a new report on The Future of Pensions.

The report acts as a roadmap for pension policy makers and society as a whole. It tackles the unique challenges currently facing future generations and provides innovative ideas to the ultimate pensions questions: How do we get people to save enough for an affordable retirement, and how can we provide better financial options for retirement?

The report includes an “innovation checklist” of ideas to ensure a better retirement for all, suggested by the senior pensions industry professionals who took part in the research exercise, and on which over 350 participants were then surveyed.

The report’s innovation checklist lists the 18 solutions in order of popularity, with the top five as follows:

• Annual pensions statements that show actual annual income at retirement
• Accelerated development of the pension dashboard
• A savings and pension planning ‘rite of passage’ for young people
• Extending auto-enrolment to the self-employed
• A greater role for IFAs, through the introduction of safe harbour legislation

The innovations relate to the four principal themes covered in the report, which came out of the global legal practice’s research process:

• The future of Defined Benefit (DB) – facilitating a “safe landing”
• The future of Defined Contribution (DC) – better coverage, adequacy, consolidation and decumulation (converting pension savings to retirement income)
• The future of long-term pensions: planning and collaboration
• The future of pensions: engagement and communication

Peter Fahy, Partner and Head of Pensions at Eversheds Sutherland, Dublin, said:

“The Future of Pensions Report, produced in conjunction with market research firm Winmark, contains a number of innovative ideas for resolving current challenges for the pensions sector. While the report is primarily focused on the UK, it also highlights many themes which are common to Ireland. It includes commentary from our European pension team on wider best practice in Ireland, Europe, the US and Asia.”

The pensions industry has seen significant change over the last 25 years, with further material challenges, both short-term and long-term, already on the horizon including the revival of the Pension Schemes Bill and its many implications.