Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • February 2016
02

Industry needs to wake up, warns pensions minister

Open-access content Friday 5th February 2016 — updated 9.13pm, Wednesday 6th May 2020

Auto-enrolment has been as success so far, but there are still enormous challenges ahead, Ros Altmann has said.

Speaking at a conference organised by the Trades Congress Union, Altmann said that approximately 5% of employers had actually set up the scheme for their staff, but a further 1.8m small employers had yet to begin auto-enrolment.

The pensions minister said these employers required more help to choose a scheme, adding: "Many of them don't have a clue about pensions."

She predicted the current minimum contributions would quadruple over the next few years, but she had concerns over member engagement with pensions. 

"The pensions industry has to make pensions more attractive to its customers, making pensions more engaging and ensuring they have a good experience. Otherwise what will happen? They just walk out. They can do that. The pensions industry needs to wake up," Altmann said.

In order for auto-escalation to work well, members "have to think it's worthwhile", they have to receive "engaging messages" from stakeholders and they need to be educated, according to the minister.

"I'd love to see auto escalation at some point. There's nothing stopping workers from doing it right now".

Auto-escalation is a concept where employees increase their contributions automatically in line with pay rise.

Altmann also urged the industry to develop "good new products and services" and adapt to the development in the new freedoms landscape.

 

"Old products simply won't do anymore", she said. 

This article appeared in our February 2016 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Three-quarters believe they will be worse off than parents in retirement

Some 71% of UK employees feel they are facing a less comfortable retirement than their parents’ generation, according to research by Willis Towers Watson.
Wednesday 3rd February 2016
Open-access content
2

Government will not address issues with state pension age equalisation

The UK government has no plans to provide concessions to women who are affected by a series of rises in state pensions age, according to a minister.
Tuesday 2nd February 2016
Open-access content
2

Pension ISA a 'bad idea', says Webb

Former pensions minister Steve Webb has criticised the idea of moving the pension tax system into an ISA style regime.
Tuesday 9th February 2016
Open-access content
2

Schemes paying higher actuarial fees may not receive better value for money, survey finds

Pension schemes do not necessarily receive more value for money by paying actuaries more, according to a report by consultancy KGC.
Monday 1st February 2016
Open-access content
ta filler

Pension exit fees to be capped by March 2017

The UK government has confirmed it will implement a cap on pension early-exit charges by the end of March next year.
Thursday 11th February 2016
Open-access content
2

Middle class savers face 'retirement crisis' with flat rate pension tax relief

Middle income savers risk facing the “biggest savings shortfalls” if the UK government decides to move tax relief on pension to a flat rate, warns Hymans Robertson.
Monday 15th February 2016
Open-access content
Filed in
02
Topics
Pensions
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ