Responding to today’s announcement that The Department for Work and Pensions (DWP) is to re-establish the Pensions Commission to examine future of the retirement system, Phil Wadsworth, Chair of the Research and Technical Group at Aptia, said: ‘We welcome the announcement of a renewed Pensions Commission but with some reservations. With millions of people not saving enough into a pension, it’s right that the government wants to improve retirement outcomes, especially for those on the lowest incomes and at the greatest risk of poverty in old age.
‘However, the commission won’t report until 2027, and its remit is to produce “proposals for change beyond the current parliament”. This suggests little will happen in the next five years or more. People need help now to build adequate savings for retirement, and we would like to see gradual increases to minimum contributions starting sooner.
‘We recognise employers are already dealing with higher national insurance contributions and getting people to save more is arguably at odds with the government’s short-term priority of increasing economic growth.
‘The previous Pensions Commission came up with the idea of auto-enrolment, which has drawn more than 10 million people into workplace pensions. But auto-enrolment hasn’t done enough. We need to get people actively involved with their pensions and change the way society thinks about retirement saving.
‘The pensions industry has lagged behind other sectors when it comes to digitisation and engagement of members. With people increasingly managing their lives online, the industry needs to utilise technology to increase people's awareness of their potential standard of living in retirement and how they can improve it. That’s why we launched our first members’ app – My Pension @ Aptia – this year.
‘There are ways to boost people’s incomes in retirement without increasing contributions. Collective defined contribution schemes offer the prospect of higher returns for scheme members by pooling risk, and the commission should consider their potential impact.
‘The government has announced the Pensions Commission with talk already building about changes to taxation of pensions in Rachel Reeves’s budget. We would again urge the government to think carefully about any changes that might undermine faith in pension saving – and to crack down on speculation that could prompt people to make rash decisions about their pension pots.’
NOTES TO EDITORS
- Founded to shape the future of pensions, health, and insurance solutions, Aptia is a leading UK pensions administrator and US employee benefits administrator dedicated to simplifying complexity for businesses and individuals. It brings together cutting-edge technology and deep industry expertise to help organisations navigate an evolving landscape with clarity and confidence.
- With a presence in the US, UK, India, and Portugal, Aptia supports over six million people and more than 1,100 clients, delivering solutions that drive efficiency, enhance financial security, and provide peace of mind.
- Aptia’s strength lies in the combination of smart technology and expert teams, ensuring that managing pensions, health, and insurance is more effective. By focusing on innovation, accessibility, and client success, Aptia helps businesses take care of their people, so they can focus on what they do best.
For more information contact:
Corinne Gladstone, Aptia Head of Corporate Communications & Public Relations.
