Around 73 per cent of early career professionals agree that pension schemes should run-on even when they can afford to buy-out, according to a Society of Pension Professionals (SPP) survey.
The annual “The Debates” event for Early Career Professionals was held earlier this month by SPP, and hosted by Aon. Pension experts made their case in two different debates.
Members of the SPP argued about whether pension schemes should continue to operate even if they have the financial means to buy them out. Increased flexibility, particularly to enhance member benefits, was one of the justifications in favour of running-on; on the other hand, relatively high costs and risk were among the ones against.
According to a survey conducted before the event, 51 per cent of participants initially agreed that pension plans should continue to operate even when they have the financial means to buy them out.
In the second debate, the question of whether pension trustees should prioritise UK investment was raised. The argument for doing so focused on the need for improved facilities and infrastructure and the relative affordability of UK equities and shares, which offer growth prospects.
Once more, participants were surveyed before the event, and the majority, around 56 per cent, said that UK investment should be the top priority for pension trustees.
But support changed again after the debate, with support for prioritising UK investment falling to just a third or 33 per cent and more than two-thirds or 67 per cent believing trustees should not prioritise UK investment.
Eversheds Sutherland chair of the SPP early career professionals group Harriet Burchett says: “The Debates again proved to be an engaging, informative and good-natured means of exploring some of the big issues facing the pensions industry.
“Compelling arguments were made on both sides and the end results help to demonstrate that views can often change when preconceived ideas are challenged and the facts are debated.”