Powering possibility in pensions – making the best use of £1.5tn of DB assets
UK DB pension schemes have never been better funded and have never targeted such low investment returns. Viewed through one lens, this is a great success story and DB schemes are on “the home stretch”…
…but at a time of high inflation reducing the value of DB benefits, widening pensions inequality across the UK and a "Hunt" for assets to support the UK economy and transition to Net Zero – is it time to reassess?
Watch our on-demand webinar where we set out an alternative way for DB pensions to be managed, and update you on our efforts to discuss it with those who could make it happen.
Sir Steve Webb, former Pensions Minister, puts the big questions to our speakers, Steve Hodder and Laasya Shekaran:
- Should the UK now adopt a more ambitious approach to managing such well-funded DB schemes, viewing them as an opportunity, not a problem?
- Was the regulatory drive for ever more DB de-risking born in a different era? Does it need to be reassessed for very well-funded schemes?
- Is there a better way of securing member benefits, such as building on the success of the Pension Protection Fund?
- Is “locking-down” DB pension schemes the right approach, when only 8% of DC savers are projected to reach a comfortable retirement?
- Will the UK look back at the opportunity to better invest £1.5tn of assets with regret?
We outline a proposal that we have developed over the past year for a new “opt-in” system for managing DB schemes, with the aim of preserving / improving DB member security, whilst generating long-term investment growth to be shared across all stakeholders. We also update you on our efforts to bring it to fruition, across the industry, regulators and government.
We encourage a healthy debate on the idea – we have heard a lot of views on this already, and look forward to hearing more!
