Jeannie Drake: Everyone must play their part in resolving adequacy challenge

Speaking today (13 October) at the Pensions UK Annual Conference in Liverpool, Drake said solving the challenge is not exclusively down to the industry, nor the state, employers or employees. She added all parties need to "manage implementation" of reforms and "allow for time to adjust".

She added a challenge at the minute is that the sector is "relying on investment returns to reduce undersaving", which is "no use when saving levels are so low".

Drake also said while auto-enrolment has boosted saving levels – despite the Turner Commission initially being told it was "unpalatable" – growing contributions "are mostly down to employer behaviour, rather than employee behaviour".

She said: "The task today is not easy, but the architecture is there and we have greater understanding of what works."

Drake added: "Inequalities in private savings persist… the solution rests in more saving."

However, she noted additional saving "is not costless as the government will spend more in tax relief, employers will need to plan for changes to remuneration budgets and employees may have lower take home pay".

She added awareness of the savings challenge is building compared to when the commission started, noting: "Most people are sensible and see the challenges."

The Pensions Commission published its interim report earlier this year and a final report with recommendations is due in early 2027.