‘Lifetime savings’ ditched as PLSA changes name and publishes 10-year plan

The term ‘lifetime savings’ has been ditched as the PLSA (Pensions and Lifetime Savings Association) rebrands itself as Pensions UK. 

This name change comes as the trade body for pension providers sets out a new strategy for the next decade. The period is likely to encompass significant change as the industry consolidates, DC supersedes DB, dashboards launch and there is a renewed focus on improving retirement outcomes.

Previously this body had been known as the National Association of Pension Funds, but changed its name to the PLSA in 2016. 

As part of this strategy Pensions UK has published a new report — 2030 Ready — outlining these changes. It says over this period the outlook for savers will be defined by macro-economic shifts with widening inequality, increased longevity, evolving expectations for retirement and more varied working lives on the journey towards taking a retirement income.

The trade body says it wants to help ensure there is a pension system that provides an adequate retirement income to savers that is “affordable and fair”.

While it is broadly supportive of many of the reforms proposed by this government, it has highlighted potential ‘red flags’  — such as the risks attached to the government mandating investments. 

As part of this report, Pensions UK has set out how it would like to see the pension system evolve over the next decade. The blueprint includes helping to deliver a market this is well run and well regulated, with savers supported in both work and retirement with a system that is simple, digital-first and by advice and guidance that is effective and accessible. 

It adds that pensions investment should deliver strong risk-adjusted returns that play a positive role in society and the economy – but it stressed schemes should exercise fiduciary duty responsibly and in the long-term interests of savers.

Looking ahead Pensions UK says consolidation will intensify into the 2030s. It predicts that master trust assets will grow from £165bn to over £700bn; with DC contract-based assets rising to around £600bn. 

It adds that while open DB schemes will also continue to grow, the overall size of this sector will continue to decrease.

At the same time, it says UK savers face growing uncertainty, with one  in five workers are projected to fall short of even the minimum Retirement Living Standard. This issues is being exacerbated by a housing crisis with over 10 per cent of over 65s expected to be  living in private rented accommodation by 2030. This also comes against a background of life expectancy continuing to rise. 

Pensions UK chief executive  Julian Mund says: “To shape the world we want to see in the 2030s, we must respond to change with clarity and purpose. Our strategy for 2025 to 2029 will prepare Pensions UK and its members to thrive as we enter the next decade. We’ll make pensions better, influence policy, give outstanding value to our members, build a great place to work and secure our future as an authoritative, purpose-led and impactful organisation.

“We have a new name, new logo and new visual identity but, as the most trusted and authoritative voice of pensions, we will continue to do everything we can to help everyone get a better income in retirement.”

Emma Douglas, chair, Pensions UK Board, said: “The world of pensions is changing fast, and we need to stay ahead as retirement saving plays a defining role for the UK. The sector will require bold thinking and strong leadership.

“Our policy work for the next five years will be based on our understanding of the world we are likely to see in the 2030s, from the experiences of members and retirees to the structure of the pensions market and the direction of public policy. We’re drawing on the latest trends, projections and evidence to set out not just what is changing, but what must be done in response.”

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