The Pensions Management Institute and Schroders have emphasised the need to reform the pension system to provide value for all savers, citing an integrated savings system that includes “sidecar” accounts and early access to retirement funds.
This comes as the two firms publish a new report today with Schroders and the Pensions Management Institute (PMI), titled Lifetime Savings Initiative: A Vision for Success and Self-Sufficiency. The report, developed with insights from a panel of experts that includes TPR representatives, aims to address critical issues within the pensions landscape.
The report highlights that 28 per cent of UK adults are struggling to manage their finances and identifies three main challenges: insufficient short-term savings for emergencies, difficulties in purchasing homes, and inadequate retirement savings.
It calls for an integrated savings system featuring “sidecar” accounts and early access to retirement funds, emphasising the need to recognise lifetime savings for financial security.
Additionally, the report stresses the importance of clearer communication to make information more accessible, aiming to enhance financial health and productivity.
TPR chief executive Nausicaa Delfas says: “Following the success of automatic enrolment, and with the government’s two-part pensions review and Bill, we now have a unique opportunity to look at how we can make the pensions system work for everyone. This timely report adds to the debate and reinforces the need to make sure all savers get value for money from the pensions system.”