Press release

Hymans Robertson’s modelling gives stark evidence of growing pension inadequacy

calendar icon 09 September 2025
time icon 2 mins

Spokespersons

Mark Stansfield
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Mark Stansfield

Actuarial Consultant

Leonard Bowman
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Leonard Bowman

Head of Corporate Consulting

Hymans Robertson has published a new paper ‘Falling into a retirement adequacy crisis’, outlining the evolution of the pension adequacy problem as part of its newly launched ‘Pensions Adequacy Project’. The paper models the expected retirement outcomes of five generations, and reviews how pension provision has evolved over the decades. The shift, as DB schemes have closed and there’s more reliance on DC schemes, has placed a growing burden on individuals to manage risks that were previously managed by employers. The goal of the project is to equip organisations with the tools, insights and strategies needed to deal with this looming adequacy crisis. The leading pensions and financial services consultancy warns that, if current retirement adequacy trends continue, there could be significant negative consequences for individuals, employers and the wider economy.

The analysis reveals how the shift from DB to DC has led to declining retirement outcomes across generations, but also that retirement savings need to last longer in retirement. The paper also finds that there is significant pensions inequality across generations, which will only widen if not addressed.  

Commenting on the report, Mark Stansfield, Actuarial Consultant, Hymans Robertson, says: 

“The move away from DB to DC pensions has transformed the retirement landscape over the last few decades. Where once there was predictability and security, there is now volatility and risk, with the burden of decision-making placed on individuals who may not have the tools or knowledge to navigate it." 

Leonard Bowman, Head of Corporate Consulting, Hymans Robertson, says: 

“The shift has created a landscape where retirement outcomes are less certain, leading to real concerns for retirement outcomes and adequacy for many individuals. The issues, highlighted in our paper, run the real risk of de-railing UK companies’ strategies over the coming years as the next generation reaches retirement and these inadequacy issues become a reality. Combined with any future government policy proposals, companies could easily find themselves on the back foot.

“To avoid this, we are calling for a fundamental change in approach. Companies need the tools, insights and solutions to align their long-term workforce strategy with emerging retirement risks and be well placed to respond to evolving government pension policy. This will be the purpose of our Pensions Adequacy Project.”

A copy of the paper ‘Falling into a retirement adequacy crisis’ can be accessed here

 

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