Pensions UK chair Emma Douglas speaks to the Pensions Commission's Jeannie Drake and Nick Pearce
Implementation is a key factor to Pensions Commission success, delegates at the Pensions UK annual conference heard.
In July, the government announced it had revived the Pensions Commission in a bid to tackle the retirement "crisis".
It said the commission – made up of Jeannie Drake, a member of the original commission, former Kingfisher chief executive Sir Ian Cheshire and Bath University professor of public policy Nick Pearce – would look at why tomorrow's pensioners are on track to be poorer than today's and "make proposals for change beyond the current parliament to deliver a pensions framework that is strong, fair and sustainable".
Speaking at the Pensions UK Annual Conference in Manchester yesterday, two of the pension commissioners, Drake and Pearce reflected on the formation of the commission in what they said was a very different context to the original Turner Commission in the early 2000s.
Pearce said a lot had changed since the last commission – pointing towards areas including labour market changes, with a large rise in the number of self-employed people as well as an increasing number of people working multiple low-paid jobs; and rises in the numbers of people in poor health or with disabilities.
He also said the demographics had continued to shift since the last commission – with an increasing number of pensioners – and there were also broader issues in the housing market too, with an increasing number of people still paying off mortgages or renting in retirement.
Pearce also noted that, while there had been a rise in inheritances since the last commission, these inheritances were not spread evenly.
Pearce also commented on adequacy – noting the commission would not only consider why tomorrow's pensioners are on track to be poorer than today's but also look at why groups such as the self-employed, women and ethnic minorities were at risk of saving less for retirement.
The Pensions Commission will publish its interim report in Spring – a report Drake said would set out the evidence, where the commissioners think the issues lay and "where the unfinished business is".
During the session Pearce and Drake were asked what lessons the current Pensions Commission could learn from the successful Turner commission.
Drake said she believed the original commission had been a success for a number of reasons – not least its focus, not only on critical policy levers, but also on implementation.
Pearce agreed the Turner Review's focus on implementation was "critical" – also noting the work the first commission did was also really well evidenced, which helped generate a political consensus.
Commenting on the session, Isio partner and Association of Consulting Actuaries chair Stewart Hastie said: "Great to hear the Pension Commissioners will be focussing on implementation and not just policy, as we all know that we probably need to save more and work longer as a society."
He added: "Hoping we see a greater role for collective defined contribution and risk sharing as part of the solution to address some of the challenges and improve outcomes for future generations and looking forward to the Commission's interim report in Spring next year."
