The majority of members, 74 per cent, believe inadequate outcomes for DC savers will be the biggest concern in the 2030s, but 77 per cent remain confident the industry will successfully adapt to meet these challenges.
According to the latest 2030 Ready: The Industry Lens report from Pensions UK, released ahead of its annual conference tomorrow, 44 per cent of respondents expect significant change by 2035, with 28 per cent anticipating it within the next five years.
Respondents warn that rising DC reliance and declining DB support could see more people working longer or retiring into relative poverty. Other key concerns include the sustainability of the state pension, the future of the Triple Lock, an ageing population and a shrinking contributor base with younger generations increasingly doubtful about the long-term security of the state pension.
The survey revealed that 23 per cent of members want to see changes to contribution levels, adequacy and automatic enrolment reform. Other priorities include improved defaults and retirement options, political stability, and clearer communications.
According to respondents, technology is the sector’s biggest opportunity, with 62 per cent citing its potential to improve personalised retirement planning, engagement, and efficiency. Tools such as the Pensions Dashboard, AI and data analytics are expected to deliver these benefits, though more than a quarter remain cautious that technology alone may not change saver behaviour.
Members are concerned about pressure to invest domestically, with 32 per cent citing government efforts to channel pension assets into UK productive finance, while 28 per cent see opportunities in ESG and sustainability.
Confidence in preparedness is high, with 88 per cent believing their organisation can respond to major industry shifts, although only 5 per cent feel fully prepared. Some of the key concerns include the future of DB schemes, political uncertainty and regulatory complexity which members say add costs and challenges for schemes and savers.
Pensions UK Executive Director of Policy and Advocacy Zoe Alexander says: “Now is the time to get ahead of change and shape the next decade for the pensions sector. Our 2030 Ready: Industry lens report brings together the views of members and wider industry experts, giving a detailed picture of the challenges and opportunities ahead..
“The momentum created by the Pensions Schemes Bill and the Pensions Commission provides a once-in-a-generation opportunity for the industry to support government in driving change that really works for savers, shaping regulation and championing innovation to make the most of the possibilities ahead. We are grateful to our members for the great insights they have shared as part of this process.”
