Financial Services APPG launches ‘Future of Financial Services’ report

Commenting on the Financial Services APPG’s ‘Future of Financial Services’ report launched today, Paul Waters, Partner and Head of DC Markets, says:

“I was really pleased to participate in discussions with the Future of Financial Services APPG and to input into its Income in Retirement 2026 report. It was good to be able to join with a broad range of organisations to share thoughts and benefit from the insight of others. The report is a thorough analysis of the issues facing the nation and I really welcome the recommendations it lays out. The industry is trying to achieve a lot at the same time. The recommendations in the report are additive to the existing program of reforms and will increase the chances of delivering a better more sustainable pension system for the DC only generations coming to retire today and ahead of us. 

“In particular, I support flexibly scaling up auto-enrolment with five-year reviews - an area the Pensions Commission will report on next year. We’ve long been clear that increased savings rates are needed to deliver better retirement outcomes for savers, and that getting there will take time. So, a progression of small increases over a long period of time, with flexibility for savers whose circumstances mean they can’t or shouldn’t save more, is sensible. A regular five yearly review would help deliver this.

“It’s also good to see the recommendation to use the Pension Dashboard as an anchor for wide DC pension support to savers, such as clear guidance on the savings rates needed to achieve stated levels of retirement income.

“I’m especially pleased to see the report highlight the need for the improved delivery of pension information amongst financial education for teenage children in schools through the National Curriculum. Our work through the Hymans Robertson Foundation has shown us that access to good financial education is patchy, and young people can significantly lose out compared to others who benefit from strong family-based support.  Pensions is just one part of a broader picture. But addressing this through schools is a sensible step. It will help address the information gap and help young adults make informed decisions that support their future retirement.

“There’s a clear message in the report that, as an industry, we should continue to be ambitious for what can be achieved and take every opportunity to make our pension system better.”  

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