Delfas: Since the ACA began in 1951, a lot has changed...But one thing has remained constant: the value of actuarial judgement
The role of actuaries is becoming “increasingly central” as the pensions system evolves, The Pensions Regulator (TPR) says.
Speaking at the Association of Consulting Actuaries' (ACA's) 75th anniversary chair's dinner last night (22 April), TPR chief executive Nausicaa Delfas said the UK pensions system is entering a "new phase" – with a growing focus on the outcomes members achieve in retirement rather than simply participation or accumulation.
She added that the role of actuaries was key as the industry worked to meet this challenge.
Delfas added that, while auto-enrolment had successfully brought millions more people into pension saving, saving, on its own, is not the same as security, with too many members still on track for inadequate retirement outcomes.
She described the current system as "unfinished business," highlighting the need to ensure that pension saving translates into sustainable retirement income.
Delfas commented: "Since the ACA began in 1951, a lot has changed...But one thing has remained constant: the value of actuarial judgement.
"You are strategic advisers, system designers, and trusted guides. Thanks to you, schemes, employers and members make decisions that will shape outcomes decades into the future."
Delfas emphasised that pensions have shifted from a technical, back-office function to a core part of financial wellbeing and economic growth, increasing the importance of actuarial expertise.
As the system becomes more complex, particularly in defined contribution (DC) pensions, the need for clear, objective, and long-term actuarial insight will continue to grow.
She highlighted the shift in DC from accumulation to outcomes, with greater focus on retirement products, decumulation pathways, and value for money assessments that consider investment performance, costs and service quality.
Delfas said actuaries will play a key role in helping trustees:
- design investment strategies that support growth, including productive finance
- develop decumulation pathways that convert savings into reliable income
- strengthen governance frameworks to ensure schemes are resilient and member-focused
Opportunities in CDC reform
Delfas also highlighted the potential of collective defined contribution (CDC) schemes as a major innovation in UK pensions, offering a collective, risk-sharing model capable of delivering more stable outcomes for members.
However, she stressed that CDC will only succeed if it is "designed, governed, and communicated well," requiring sophisticated modelling, clear risk-sharing mechanisms and strong governance.
She said "CDC invites the [actuarial] profession to engage in system design, not just scheme design. It is an opportunity for you to help shape a new chapter in UK pensions."
A call to focus on outcomes and raise standards
In an evolving pensions environment, Delfas called on actuaries to keep long term outcomes front of mind in decision making, support trustees in navigating greater complexity, and help raise governance standards across the sector.
She also emphasised the importance of actuarial independence and rigour, noting that actuaries play a critical role not only in technical analysis but in shaping the direction of the pensions system as a whole.
