Industry group calls for public voice in pensions reform
The report highlighted that the UK pensions system is facing significant structural challenges, including widespread undersaving, demographic pressures and persistent inequalities
A cross-industry group has called for greater public involvement in UK pensions policymaking, arguing that citizen participation will be critical to building trust and delivering a fair and sustainable retirement system.
The call comes alongside the publication of a new report, Deliberative Democracy & Pensions: Building a democratic mandate for pensions reform, which sets out how deliberative approaches could help shape the next phase of reform.
Commissioned by a group including the Standard Life Centre for the Future of Retirement, the Institute and Faculty of Actuaries, Pensions UK, Nest, Nest Insight and People’s Pension, the report argued that pensions policy must increasingly reflect the views of the public as individuals take on greater responsibility for retirement outcomes.
The report highlighted that the UK pensions system is facing significant structural challenges, including widespread undersaving, demographic pressures and persistent inequalities.
Against this backdrop, the report suggested that traditional policymaking approaches may not be sufficient to address the complex trade-offs required to achieve adequate and sustainable retirement outcomes.
A central recommendation was the creation of a citizens’ assembly on the future of UK pensions, which would bring together a representative group of the public to engage with policy challenges, weigh evidence and develop recommendations to support the work of the Pensions Commission and the Department for Work and Pensions (DWP).
The report argued that such an approach could help policymakers better understand what the public considers to be a fair pensions settlement, while also strengthening the legitimacy of reform decisions.
In addition to a citizens’ assembly, the report outlined two further mechanisms to embed public input: targeted public dialogues with specific cohorts, such as lower earners or the self-employed, and a national invitation for public submissions.
Standard Life Centre for the Future of Retirement director, Catherine Foot, said deliberative approaches offer a way to support more meaningful public engagement with complex policy challenges.
Today’s pensions challenges involve difficult trade-offs and long-term consequences, she said.
Deliberative approaches stand out for their ability to support the public to engage with these issues in a meaningful way, helping policymakers to ground reform in public values as well as technical evidence, she said.
Financial Inclusion Commissioner and Financial Services Consumer Panel member, Johnny Timpson, added that pensions reform must move beyond being an expert-driven exercise, towards an approach that is grounded in public values and consensus across the generations.