Outlining its key objectives for the new Government, NOW: Pensions believes an AE Roadmap will play a crucial role in supporting pensions adequacy. To deliver a Roadmap, a collaborative approach across industry and government is needed to agree and put in place the future changes. NOW: Pensions believes that a Roadmap should include reviewing the adequacy of AE contribution levels and the scope of AE, as well as an approach to implementing the AE Extension Act during the next Parliament.
Fairness for all
It is critical that the necessary evolution of the pensions system achieves fairness for all. In particular, addressing the challenges of the underpensioned and gender pensions gap. In addition, on existing policy areas such as small pots and value for money, it is vital that these work for lower earning members and provide value for all cohorts of saver.
Ensuring focus on member outcomes
NOW: Pensions also calls on future pensions policy to be focused on delivering the best outcomes for members. With a number of policy projects already in motion, a review of these current projects is needed in order to assess the cumulative impact, efficiencies and sequencing. This is to ensure key policy objectives are met in the most efficient way, and that there is a real value gain for members.
NOW: Pensions also looks forward to engaging with Labour on the productive finance and growth agenda to make certain that it serves the best interests of members.
Commenting on the future direction of pensions policy under the new Government, Patrick Luthi, CEO of NOW: Pensions said: ““We welcome the plans from the new Government to undertake a pensions review. This provides a great opportunity to revisit the role of productive finance and ensuring members best interests are front and centre. We believe any review must also consider a strategy to secure the ongoing success of AE.
“We are also keen to explore with government the approach to pension strategy and policy under a new joint HMT/DWP pensions Ministerial portfolio. In particular we are keen that this should see a focus on member outcomes, a deep understanding of the importance of automatic enrolment and the key role of workplace pensions in the landscape .
“Developing a clear roadmap for auto-enrolment is crucial and will provide business certainty and stability for employers and the industry in the long term – including preparing for implementation of the AE Extension Act and beyond.
“We look forward to working with the new Pensions Minister and Government and support plans that are focused on delivering a pensions system that is fairer for all and provides better outcomes for a member’s retirement.”
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