EVENTS:

Older Consumers,Pensions,Work and Retirement

Thursday, 13th July 2017; 15:00 (for 15:15) - 17:00, House of Lords, Palace of Westminster, London SW1A 0PW

Held in the House of Lords on Thursday, 13th July 2017, this roundtable discussion focused on 'The Value of Financial Advice', a report produced by ILC-UK, with the support of Royal London.

Attendees heard from:

  • Report author Ben Franklin, Head of Economics of Ageing, ILC-UK
  • Isobel Langton, CEO, Intermediary, Royal London
  • Sir Steve Webb, Director of Policy, Royal London

The report under discussion is now avaialble to download here.

The presentation slides from the event are available to view below:

Economics of Age,Pensions,Work and Retirement

Wednesday, 18th January 2017; 09:00 (for 09:30) - 11:00, House of Lords, Palace of Westminster, London SW1A 0PW

Held on Wednesday, 18th January 2017 in the House of Lords, this event launched the ILC-UK report 'The end of the beginning? Private defined benefit pensions and the new normal'.

The collapse of BHS and concerns over the future of Tata Steel have put the sustainability of private sector defined benefit (DB) pension schemesfirmly into the spotlight. These types of DB schemes promise a set payment to their members in retirement based on salary and years of service, but there are growing concerns that many such schemes and their sponsors will be unable to fulfil their promises at a time of rising life expectancy and falling interest rates.

Rather than a technical paper, the report is intended to be a discussion piece in order to stimulate further debate on this highly important issue. To mark the launch, a panel discussion was held, including Ben Franklin, Head of Economics of an Ageing Society, ILC-UK; Douglas Anderson, Partner, Hymans Robertson; Prof. David Blake, Director, Pensions Institute, Cass Business School, and Jennifer Donohue, Partner, Ince and Co LLP.

The presentation slides from the event are available to view below:
 

Pensions,Work and Retirement

Monday 28th November 2016; 12:30 (for 13:00) - 14:30; London

On Monday 28th November 2016, ILC-UK held a private, invitation only roundtable lunch discussion on the pensions and savings challenges facing consumers in the UK, and around the world. The roundtable was attended by Pensions Minister Richard Harrington MP, and was limited to fifteen high‐level participants; the meeting operated under the Chatham House Rule.

The saving for retirement challenge is both local and global. Rising life expectancy is going to put pressure on pensions systems around the world, making it harder for governments to fund PAYG systems and more important that individuals make private savings in order to fund retirement.

A major new project, ‘The Global and Local Savings Challenge: Perceptions Vs Reality’ will feature new survey data from the UK, US and Asia to present a picture of perceived readiness and expectations for retirements internationally. The data, presented and discussed by ILC-UK at the roundtable, includes analysis of global trends in savings rates, the impact on the economy, and the inequalities between the generations.

The final report, to be launched in the New Year after including input from the roundtable, will also conduct original analysis to determine the ability of pensions systems around the world to support incomes in retirement; this will show whether more optimistic countries and regions are justified in their optimism, or whether there is a significant disconnect between expectations. The report, for which we thank Prudential plc for their support, will also examine retirement readiness by UK region.

During this roundtable discussion with pensions and savings experts, participants discussed how best public policy, and the financial services industry can work together to solve the savings challenges facing consumers today, and what the UK can learn from international pensions systems and savings practices.

Future of Age,Pensions,Quality of Life,Work and Retirement

Friday 10th June 2016; 09:15 - 16:30 (followed by a short drinks reception); The Chartered Insurance Institute, 20 Aldermanbury, London EC2V 7HY

On Friday, 10th June 2016, ILC-UK hosted our second Retirement Income Summit, hosted by The Chartered Insurance Institute.

In 2012, ILC-UK organised our first Retirement Income Summit which provided a platform for discussion between 180 policymakers, senior insurance industry experts, business representatives, charities and academics.


Over the past 20 years, huge progress has been made in tackling pensioner poverty. Relative pensioner incomes have increased due to a combination of later retirement, the pensions “triple lock” and increased earning power of the baby boomers.

However, the future for retirement income looks less rosy. Policy change, ongoing demographic change and low investment returns are contributing to significant uncertainty. The new single tier pension will be less generous for the majority in the long term. Fewer people will find themselves receiving the more generous final salary pensions. And incomes of the next generation of retirees look likely to be lower. Three in ten of Britain’s 55-64 year olds do not have any pension savings at all.

With the end of compulsory annuitisation, retirees over the next 20 years will face many more options. Making the wrong decision could result in people living longer than their money or in greater levels of under consumption. Greater risk is being placed in the hands of retirees and there is a question as to what role there might be for collective decumulation in the future.

Navigating the retirement income maze will require greater information, advice and financial capability. Finding new ways of delivering advice to the mass market is vital. Recent and future developments in robo-advice offer some opportunity and regulators will need to find ways to ensure that they do not inadvertently create barriers to greater access to advice. In addition to at retirement financial advice, there is likely to be a growing need for mid retirement financial advice. But how can this be best delivered.

During the Retirement Income Summit, keynote speakers discussed:

  • How can individuals and industry respond best to policy change (pension freedoms, cashing in annuities and possible tax relief changes)?
  • How can future retirement income be guaranteed in a context of continuing demographic change?
  • How can providers and individuals deliver a decent income during a period of low investment returns?
  • How can we overcome consumer distrust and lack of engagement with the industry?
  • How can we deliver advice and financial capability in the future?
  • What will be the future role of housing wealth for retirement income and what is the role of extend working lives?
  • What is the potential for new products to help reduce risk for future generations of retirees?


Agenda

09:15 – 09:50 - Registration, refreshments will be served
09:50 – 09:55 - Welcome from CII - Laurence Baxter, Head of Policy & Research, The Chartered Insurance Institute
09:55 – 10:00 - Welcome by Chair - Lawrence Churchill, ILC-UK Trustee

Getting young people saving - Discussion
10:00 – 11:00 - Sam Smethers, The Fawcett Society, will chair this session. Panellists include Michelle McGagh; Kate Jopling; Helen Creighton; Claire Walsh

Innovation at retirement. Lessons from the US, opportunities and challenges
11:00 – 11:20 - Chip Castille, Managing Director, Chief Retirement Strategist, BlackRock

11:20 – 11:40 - Break, refreshments will be served

Where next for advice and guidance?
11:40 – 11:50 - Cesira Urzi Brancati, Research Fellow, ILC-UK
11:50 – 12:00 - Michelle Cracknell, Chief Executive, The Pensions Advisory Service (TPAS)
12:00 – 12:50 - Discussion - Panellists include Michelle Cracknell, Chief Executive, The Pensions Advisory Service (TPAS); Cesira Urzi Brancati, Research Fellow, ILC-UK; Jackie Spencer, Pension and Retirement Expert for the UK's Money Advice Service; Claire Walsh, Chartered Financial Planner, Aspect8, Brighton

12:50 – 13:30 - Lunch, refreshments will be served

13:30 - Welcome by Chair - Baroness Sally Greengross, Chief Executive, ILC-UK

Retirement today, retirement tomorrow
13:30 – 13:55 - Ben Franklin, Head of Economics of an Ageing Society, ILC-UK
13:55 – 14:20 - Baroness Jeannie Drake, Member of the Finance Bill Sub-Committee

14:20 – 14:35 - Break, refreshments will be serve

14:35 – 15:00 - Professor David Blake, Professor of Pension Economics, Cass Business School

Pension Freedoms: The Good, the Bad and the Ugly
15:00 – 15:15 - Steve Webb, Director of Policy and External Communications, Royal London
15:15 – 15:30 - Gregg McClymont, Head of Retirement Savings, Aberdeen Asset Management PLC

Where next for Retirement Income? Discussion and closing debate
15:30 – 16:25 - Douglas Anderson, Partner, Hymans Robertson; Andrew Tully, Pensions Technical Director, Retirement Advantage; Gregg McClymont, Head of Retirement Savings, Aberdeen Asset Management PLC; Steve Webb, Director of Policy and External Communications, Royal London

16:25 – 16:30 - Close by chair - Baroness Sally Greengross, Chief Executive, ILC-UK

16:30 - 17:15 - Wine reception
 

Please see below for the presentations delivered at the Second National Retirement Income Summit 
 

Equality and Human Rights,Longevity,Pensions

Tuesday 3rd May; 16.30pm (for a 17:00 start) - 18.30, followed by drinks reception; Prudential, M&G, 5 Laurence Poutney Hill, EC4R 0HH

ILC-UK and Cass Business School private debate and reception, supported by ILC-UK Partners Programme and hosted by Prudential.

At this event, Professor Les Mayhew launched new research highlighting a growth in inequalities in life expectancy over recent decades. ILC-UK facilitated a debate on how future increases in State Pension Age can be fair, given these growing inequalities with contributions from John Cridland, the Government's Independent Reviewer of State Pension Age.

ILC-UK’s 2014 research (Linking State Pension Age to Longevity), supported by Age UK, found that measures such as healthy life expectancy and disability-free life expectancy vary significantly by region and social class.

This new research by Professor Les Mayhew reveals that the life expectancy gap between the richest and poorest has begun to increase. The research reveals that the richest 5% of men are living an average of 96.2 years, which is 34.2 years longer than the poorest 10% of men. The gap is 1.7 years wider than in 1993.

There are likely to be significant unintended consequences of further increases to State Pension Age in 2028. Increasing State Pension Age up to levels where disability rates are higher, raises concerns about transferring spending from the State Pension to disability or other working age benefits. Increasing the State Pension Age further might also impact on the supply of carers. And will employers be prepared for further increases in the State Pension Age?

Public policy is beginning to recognise the challenges ahead. The DWP Select Committee are currently conducting an Inquiry into “early drawing of the state pension”. Labour have proposed a flexible state pension age so manual workers can retire earlier than other workers. Are there other, potentially more radical solutions to the inequalities challenge?

Please see below for the slides delivered by Professor Les Mayhew at the event.

To download the slides, please click the Pdf link below.

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Care,Communities and Housing,Economics of Age,Future of Age,Health,Intergenerational,Pensions,Quality of Life,Work and Retirement

Thursday 17th March 2016; 14:30 - 16:30; House of Lords, Westminster, London

We held an event to debate the impact of the 2016 Budget on the Future of Retirement Incomes. The debate, chaired by Baroness Sally Greengross and supported by the International Longevity Centre –UK’s (ILC-UK) Partners Programme, took place ahead of our Second Retirement Income Summit on 10th June and will feed into ILC-UK’s plans for the event.

Following the Government’s Comprehensive Spending Review in November 2015, Chancellor George Osbourne will deliver the second Budget of this Parliament’s Conservative majority Government on Wednesday 16th March 2016.

During the ILC-UK organised debate, we presented our initial analysis of the Budget, looking beyond the immediate ‘winners and losers’ commentary to consider whether the long-term challenges of low productivity, systemic under saving by private individuals and the critical underfunding of adult social care are being addressed. Ben Franklin, Head of Economics of an Ageing Society at ILC-UK presented the analysis, and was on hand to answer any questions delegates had. We also heard from Chris Noon, Partner at Hymans Robertson, and Laurence Baxter, Head of Policy & Research at The Chartered Insurance Institute (CII).

The 2015 Budget and the Comprehensive Spending Review confounded expectations through revealing a revised projected increase of public finance provisions of £27 billion by 2020 thereby enabling the Government to halt proposed tax credit cuts. It also saw the Chancellor stick to his promise of maintaining real terms spending on health, schools and defence while further cutting local government coffers. The 2016 Budget will undoubtedly contain its own surprises, including an anticipated announcement regarding the future of pensions tax relief just one year on from “pension freedoms”.


For more information about the ILC-UK Partners Programme, please click on the below hyperlink:
ILC-UK PARTNERS PROGRAMME

Members of the ILC-UK Partners Programme are Anchor, Audley, Aviva, Equiniti, Hymans Robertson, Legal & General, Partnership, Prudential and Retirement Advantage.

 

Please see below for Ben Franklin's presentations slides from the event.

 
Pensions

Monday 25th January 2016, 14:30 - 16:30; House of Lords, London, SW1A 0AA

In July 2015, the Government began a consultation on changing how the UK incentivises private pension saving, and the Chancellor is expected to respond to this consultation in the Government’s annual Budget in March 2016.

The Future of Private Pension Saving, kindly supported by Age UK, brought together Parliamentarians, business, academics and industry experts to discuss how best the UK Government can incentivise private pension saving.

The debate was opened by initial remarks from Angela Rayner MP (Shadow Pensions Minister), Jackie Wells (Head of Policy and Research, Pensions and Lifetime Savings Association), Sarah Luheshi (Deputy Director, Pensions Policy Institute), and Yvonne Braun (Director, Long-Term Savings Policy, Association of British Insurers).

On Wednesday 27th January, David John, Senior Strategic Policy Adviser at AARP’s Public Policy Institute, and Deputy Director of the Retirement Security Project at the Brookings institute delivered a presentation on tax incentives for pension saving in the US context at an informal reception hosted by Age UK.

Discussions from this event contributed to a formal representation to the HM Treasury regarding Government policy on pensions tax relief and private pension saving.
 

Future of Age,Pensions,Quality of Life

Tuesday 1st December 2015; 08:30 (for a 09:00 start) – 10:30; Prudential Auditorium, M&G, Governors House, 5 Laurence Pountney Hill, London EC4R 0HH

This launch event of a new ILC-UK report 'Understanding Retirement Journeys: Expectations vs reality', was kindly supported by Prudential.

Building on ILC-UK’s extensive work on older consumers and on retirement income, this major research report assesses the differences between theory or popular belief about retirement and the reality of it.

The report considers how spending varies during old age and challenges pre-existing stereotypes about retired life which can be misleading and may contribute to poor planning or unrealistic expectations. This report, which incorporates new quantitative analysis and the feedback from 3 expert focus groups, will explore the role for policymakers and industry in helping us retire well.

The full report and an executive summary are available to download here.

Please see below for the presentation slides from the event.

Pensions

Thursday 26th November 2015, 08:30 (for a 09:00 start) – 10:30; Committee Room G, House of Lords, London, SW1A 0PW

An Age UK and ILC-UK debate

The Spending Review, published on 25th November 2015 set out the Governments plans to deliver additional departmental savings with a view to eliminating Britain’s deficit by 2019-2020.

Government Departments were asked to model the impact of real term spending cuts of between 25% and 40%. At the same time some Departments had already been given an assurance that their spending will be protected. The Government has committed to invest in both the NHS and defence whilst also continuing to protect spending on education and foreign aid.

Because of the scale of cuts planned and the fact that some Departmental spending is protected, other Departments face significant funding cuts.

This event took place the morning after the Spending Review had been announced. Participants were  asked to consider:

  • How will the spending review impact on the future provision of adult social care?
  • How has long term funding for later life been impacted by the spending review?
  • Following the spending review, what are the priorities for policy action for the next year?

Ben Franklin, Head of Economics of an Ageing Society at ILC-UK responded to the Spending Review, and outlined its potential implications for the social care system, and the future of the State.

Please see below for his presentation.

Care,Economics of Age,Future of Age,Health,Pensions,Quality of Life,Work and Retirement

Tuesday, 24th November 2015; 09:00 (for a 09:30 start) – 17:00; 20 Cavendish Square, London, W1G 0RN

The Future of Ageing took place on Tuesday 24th November 2015 in London. For details of this year's conference, visit www.futureofageing.org.uk.

We were grateful to Eli Lilly, McCarthy & Stone, Partnership and Partnership for Change for their sponsorship of this conference, and to the Social Care Institute for Excellence (SCIE), Lipreading Practice, and the organisers of the IFA 2016 Conference for providing inserts for delegate packs on the day.

During the conference, we painted a picture of the future of ageing and explored the challenges and opportunities ahead. Through our unique lifecourse focus we will explored the potential impact of ageing not just on today’s older population, but also on tomorrows.

We explored five key areas:

  • The future challenges and opportunities of health and care in an ageing society.
  • The future of retirement income: Wealthy pensioners or persistent poverty?
  • The future of our economy in an ageing society: Adapting our economy to ageing?
  • The future of our built environment in an ageing society.
  • The future of ageing research.

We heard presentations from:

  • Baroness Altmann (Minister for Pensions);
  • Professor Sir Mark Walport (Government Chief Scientific Adviser [GCSA] and Head of the Government Office for Science);
  • Lord Willetts (Executive Chair at Resolution Foundation, and former Minister of State [Department for Business, Innovation and Skills]);
  • Lord Filkin (Chair of the Centre for Ageing Better and Chair of the House of Lords Committee on Public Service and Demographic Change);
  • Paul Johnson (Director, Institute for Fiscal Studies);
  • Jim Boyd (Director of Corporate Affairs at Partnership) - Jim Boyd stepped in at short notice for Steve Groves who was unwell;
  • Professor Jane Elliott (Chief Executive, Economic and Social Research Council);
  • Steven Baxter (Partner, Hymans Robertson);
  • Professor Ian Philp (Deputy Medical Director for Older People’s Care, Heart of England NHS Foundation Trust)
  • Elaine Draper (Director, Accessibility & Inclusion, Barclays)
  • Mario Ambrosi (Head of Communications and Public Affairs, Anchor) and
  • Baroness Kay Andrews (Member of the House of Lords Built Environment Committee, Former Parliamentary Under-Secretary (Department for Communities and Local Government) 2006-2009)

The conference was chaired by Baroness Sally Greengross (Chief Executive, ILC-UK) and Lawrence Churchill (Trustee, ILC-UK). The full conference brochure, including biographies for each of speakers, is available to view here - ILC-UK Future of Ageing Conference Brochure

This was a paid-for conference with an early bird rate available until a few month before the conference.
 

See below for the presentations slides from the day.


See below for an agenda from the day.

ILC-UK Future of Ageing Conference 2015 - AGENDA


 


We were grateful to Eli Lilly, McCarthy & Stone, Partnership and Partnership for Change for their sponsorship of this conference, and to the Social Care Institute for Excellence (SCIE), Lipreading Practice, and the organisers of the IFA 2016 Conference for providing inserts for delegate packs on the day

 

   

   
 

    

 

 

Pensions

Thursday 12th November 2015; 08:30 (for a 09:00 start) – 11:00; ILC-UK, 11 Tufton Street, Westminster, London, SW1P 3QB

In 2014 the UK Government announced radical proposals which now allow people to withdraw money from their pension pot from age 55, subject to their marginal rate of income tax in that year.

The main effect of this change will be to put more onus on the individual to ensure they manage their resources to last for their retirement and also removes the obligation to annuitise their funds at any future age.

During this ILC-UK Centre for Later Life Funding debate, Professor Les Mayhew of Cass Business School presented a new paper which explores how individuals can best use their pension pots to align them with their own personal financial objectives and longevity risks.

Industry representatives, including Trevor Llanwarne (Trustee, ILC-UK), Steven Baxter (Partner, Hymans), and Jackie Wells, (Head of Policy and Research, NAPF) responded to the paper by Professor Mayhew, and the audience debated the report's findings.

To view Professor Les Mayhew's presentation given at the launch, please see below.

 

Pensions,Work and Retirement

Friday 26th June 2015; 08:00 (for an 08:30 start) – 10:00; Great Hall, Chartered Insurance Institute, 20 Aldermanbury, London, EC2V 7HY

I am delighted to invite you to the ILC-UK’s launch of the new Centre for Later Life Funding. This new body will focus explicitly on finding solutions to the retirement funding issues facing older people and represents a coalition of private sector organisations and charities working to support the funding needs of today’s retirees.

Eventbrite - ILC-UK’s launch of the Centre for Later Life Funding

This Parliament will see sweeping changes to the long term savings and later life funding landscape. There will be the continued roll out of auto-enrolment which should, at least, raise the numbers of people saving for retirement. At the same time, consumers and the pensions industry will be getting accustomed to the new freedom and choice offered to those with defined contribution pension pots. “Freedoms” may well be extended to those who have already annuitised so that they can sell their annuity on for some cash value. And let’s not forget that we will also, finally, see the introduction of the cap on adult social care costs and a new, more generous means test.

This is some agenda, and no doubt there will be further significant policy changes coming over the next five years.

Within this context, this event will explore the big later life funding questions facing the new government, and by implication key stakeholders across the sector:

  • How the freedom and choice agenda relates to retirement planning for later life.
  • How the cap on care costs and the new means test will work in practise.
  • Whether new products and services can be developed to meet care funding needs.
  • How housing wealth could be used to pay for later life costs in an equitable way.
  • What role pensions products can play in funding care in later life.
  • How the integration of health and care might influence the financial planning decisions of individuals.
  • Whether continued fiscal consolidation mean individuals will have to pay more to get quality care and support.

The event will begin with a short presentation outlining the context from the ILC-UK, before a panel discussion with experts giving their considered views. There will also be considerable time given for questions from the audience.
 

Agenda for the event

08:00 - 08:30
Registration

08:30 - 08:35 - Welcome and Opening Comments
Professor Martin Green OBE, Chief Executive, Care England; Chairman, ILC-UK

08:35 - 08:45 - Presentation
Ben Franklin, Head of Economics of an Ageing Society, ILC-UK

08:45 - 09:05 - Panel Responses
Jane Vass, Head of Public Policy, Age UK
Laurence Baxter, Head of Policy and Research, Chartered Insurance Institute
Jackie Wells, Head of Policy & Research, National Association of Pension Funds
Tim Fassam, Head of Public Affairs, Prudential

09:05 - 09:50 - Discussion and Q&A

09:50 - 10:00 - Closing Comments
Professor Martin Green OBE, Chief Executive, Care England; Chairman, ILC-UK


About the Centre for Later Life Funding

The Centre for Later Life Funding is, in part, a continuation of its predecessor body the Care Funding Advice Network (CFAN) – a coalition of organisations and individuals seeking to improve on the Care Bill’s recognition of the need for financial advice.

The Centre represents a significant expansion in terms of scope and output to include regular policy briefings and research papers which consider not just questions about care funding but questions about funding retirement more broadly. We think that the artificial separation of retirement funding from care funding is unhelpful given that long-term care can be one of the biggest costs that people face during their retirement years, and the new “cap” will not change that fact.


We hope you can join us for what should be an important and timely event.

Yours sincerely

Baroness Greengross
Chief Executive of the International Longevity Centre UK

Pensions

Part of the ILC-UK ‘Understand Ageing’ Workshop Series

Thursday 23rd April 2015; ILC-UK, 11 Tufton Street, Westminster, London, SW1P 3QB; 13:30 (for 14:00 start) – 17:00. Lunch will be available from 13:30.


The new pension freedoms which come into force in April 2015 will transform the “at retirement” market. At the same time, a challenging economic environment poses a threat to UK savings rates and retirement incomes over the long term.


This half day workshop will focus on helping you see the wood from the trees in the context of constant policy change and a challenging global economic environment.


The workshop will be presented by ILC-UK Senior Research Fellow, Ben Franklin, formerly of HM Treasury, the Financial Conduct Authority and the Chartered Insurance Institute.


Part of this workshop will explore the impact of the macro-economic context on retirement incomes including:

  • What might our economic future look like and what are its implications for savers and investors?
  • The impact of exceptional monetary policy conditions on consumer outcomes;
  • How can auto-enrolment and other policy levers aimed at inducing or “nudging” increased savings be able to compete with this broader macroeconomic picture?


The second part of the workshop will explore how individuals might respond to the new pension freedoms and the implications for consumers, products and services.

  • How are people likely to respond to the new environment?
  • What are consumer preferences for taking a retirement income?
  • What barriers to consumers face to making good decisions?
  • What do different “at retirement” choices mean for income in retirement?
  • Which consumer groups stand to lose the most by making bad decisions and what the implications for how they will fund retirement? 
  • What are the early indications of how consumers are responding to the pension freedoms?


Discussion time will provide an opportunity for you to discuss and consider the impact of these changes on your organisation.


Who should attend?
Individuals or organisations:

  • Who want to consider the business opportunities and challenges emerging from the new policy environment
  • Producing products for the “retirement” marketplace
  • Interested in the future of retirement incomes
  • Interested in understanding the impact of the new pension freedoms
  • Interested in exploring how new policy may interact with the macro-economic environment


Dates
The workshop will take place on Thursday 23rd April 2015, 13:30 – 14:00, with lunch available from 13:30.


Cost
Attendance at workshop:
£350+VAT (corporate)
£200+VAT (not for profit)


Interested parties must register to attend this course via the button below. We will be unable to accept drop-ins on the day.
Eventbrite - The future of pensions and long-term savings. Risks and opportunities in a challenging economic environment. An ILC-UK Workshop


Cancellations
There is a £100 non-refundable charge on all bookings.
Cancellations within 7 days of the course will be charged 50% of the full cost
Cancellations within 1 day of the course are non-refundable


Other workshops
ILC-UK organise bespoke workshops for organisations and companies, specifically designed to your interests. For example, we will run future sessions on specific aspects of ageing (e.g. dementia; older workers; economics of ageing). ILC-UK also runs workshops and presents to Corporate and Charity Board’s on the opportunities and challenges of ageing. Please contact David Sinclair for more information.

Pensions,Work and Retirement

Monday 16th March 2015; 08:00 (for an 8:30 start) – 10:00; Great Hall, Chartered Insurance Institute, 20 Aldermanbury, London, EC2V 7HY

On the 16th of March we launched “Here today, gone tomorrow: How today’s retirement choices could affect financial resilience over the long term?”, new ILC-UK research made possible with the support of Aviva.

Launching two days before the 2015 budget and less than a month before the new pensions freedoms come into effect, we believe this report is timely. While the new freedoms have been a source of much debate and speculation since they were announced in the Budget of 2014, there has been little or no quantitative research into the long-term impact on retirees’ finances.

This report is the first detailed exploration of what certain choices made today could mean for overall levels of retirement income adequacy over the next 30 years. Using in-depth analysis of the largest representative survey of people over 50 in England (the English Longitudinal Study of Ageing), it quantifies the potential level of consumer harm associated with particular choices and outlines which consumer segments are most at risk of facing income shortfalls if they make certain decisions. It is therefore a must read for industry, regulators, policymakers and consumer bodies.

This report is the first part of a wider programme of ILC-UK work entitled Sustainable Older Society 2020 (SOS 2020). The SOS 2020 project aims to develop intergenerational solutions to deliver an economically sustainable and long term approach to an ageing society. There are two branches to the project, this one which focuses on finance and another with a focus on health.

Chair: Baroness Sally Greengross (ILC-UK)
Speakers included: David Thomson (CII), Ben Franklin (ILC-UK), Jackie Spencer (Money Advice Service), John Lawson (Aviva UK), Jackie Wells (NAPF)

Ben Franklin's slides from the event are available below:

Pensions,Work and Retirement

Monday 23rd February 2015; 10:30 (for an 11:00 start) - 12:30 followed by a sandwich lunch;
M&G, Governor’s House, Laurence Pountney Hill, London, EC4R 0HH

This event was the launch of the new ILC-UK report “Towards a new Pensions Commission”, supported by Prudential.

2015 will mark the 10th Anniversary of the Pensions Commission. Since this time, there have been a whole plethora of policy changes that have affected the pensions landscape, some of which were first proposed by the Pensions Commission and some of which were not.

In a press release issued on the 26th January, ILC-UK project that despite auto-enrolment, the savings ratio is likely to continue to fall up until 2020, posing significant risk to long term retirement incomes.

This new ILC-UK report explores whether or not a new Pensions Commission is necessary and what form such a commission might take.

At this event we discussed the key issues raised in the ILC-UK work including:

  • The impacts of auto-enrolment and changes to the State Pension age
  • The implications of recent macro-economic developments for pensions policy making in the coming years
  • The possible effects of the new pension freedoms
  • The role of a Pensions Commission in the current economic and policy environment

Slides from the event are available below.

Communities and Housing,Future of Age,Health,International,Pensions

Wednesday 5th November 2014; European and Economic and Social Committee, TRE 7701, 7th floor, Trèves Building, 74 rue de Trèves, 1040 Brussels; 14:00 (for 14:30 start) – 17:00

This event was kindly hosted by the European Economic and Social Committee (EESC).

Throughout 2014, ILC-UK, supported by specialist insurer, Partnership Assurance Group plc (Partnership), has been undertaking a series of events to explore the relationship between our changing demography and public policy.

This event, as part of the Population Patterns Seminar Series, explored Europe’s ageing demography. Europe is currently facing unprecedented changes - by 2050 it is predicted that more than a third of the European population will be over 60 years old as a result of rising life expectancies and low birth rates.

These changes pose major economic, budgetary and social challenges. In the EU, age related spending is projected to rise from an annual cost of 25% to 29% of GDP between 2010 and 2060. At the same time, there are set to be far fewer people of working age to support European ageing populations- by 2060 the dependency ratio is predicted to drop to under two working-age people for every person aged over 65.

At this event we aimed to inform further this critical debate by launching our first ‘European Factpack’ of demographic statistics. This Factpack provided statistics on a range of topics from life expectancy to housing supply, and pensions to the use of new technologies amongst today’s older generations. The ‘European Factpack’ builds on our UK Factpack initiative, by providing the public, private and third sectors with the most up-to-date information on Europe’s changing demography.

During the discussion we explored:

  • What are the ramifications of Europe’s changing demography, both for individual countries and Europe as a whole?
  • What policy changes will need to be enacted to ensure Europe’s economic sustainability?
  • How the public, private and third sectors react to findings of the ‘European Factpack’?
  • Which areas of the Factpack might be expanded to help policy-makers, journalists and opinion formers?
     

This event was chaired by Lawrence Churchill, ILC-UK Trustee. Confirmed speakers inlcuded: Fritz von Nordheim (European Commission), Jean Lambert (MEP), Maciej Kucharczyk (Age Platform Europe), Andrew Rear (Munich Re), Maureen O'Neill (European Economic and Social Committee) and Richard Willets (Partnership).

Slides from the event are available below:

The slides presented by Fritz Von Nordheim are available here.

 

Fritz Von Nordheim ILC-UK 5 Nov 2014

 

 

Pensions,Quality of Life,Work and Retirement

Sunday 21st September 2014; Green Room, Bridgewater Hall, Lower Mosley St, Manchester, M2 3WS (Outside the secure zone); 18:30 (for 19:00) to 21:00
Exclusive Invitation Only dinner debate

ILC-UK and the University of Manchester, supported by the British Society of Gerontology

 

A private dinner debate in Manchester during the Labour Party Conference 2014. During the debate we considered how we can maximise the economic benefits of extending working lives whilst minimising the social challenges.

In June, the Government set out a new action plan to help older workers stay in the workplace. The ‘Fuller Working Lives’ framework for action sets out a series of proposals to support extending working lives. It announced the appointment of a new Business Champion for Older Workers.

Encouraging and supporting people to stay on in work longer is likely to be vital to future economic success. Older workers will play a significant role in addressing skills gaps and increasing the average age of retirement is likely to deliver positive results in terms of retirement income.

According to Office for National Statistics estimates, in the next 10 years there will be 700,000 fewer people aged 16 to 49 but 3.7 million more people aged between 50 and State Pension age – a fundamental shift in the age distribution of the UK workforce which industry cannot ignore.

While the UK employment rate for 55 to 64 year olds is around 60% and growing, the recent improvement has been relatively modest compared to many other nations, and several countries achieve employment rates of around 70% or above – so there is significant room for improvement.

During this debate we explored what more can be done to extend working lives and how we can manage the social challenges.

This was an exclusive invitation only dinner debate.

Communities and Housing,Equality and Human Rights,Health,Pensions,Work and Retirement

ILC-UK are currently planning our activities at the 2014 Political Party Conferences. We hope to run a series of events on topics as diverse as pensions, health, employment, care and communities as part of the main party conference fringe programme.

If you are interested in talking to us about sponsoring a fringe event, please do get in touch with David Sinclair or Jessica Watson (jessicawatson@ilcuk.org.uk / davidsinclair@ilcuk.org.uk / 0207 340 0440).

We are also planning our 2014-2015 events programme. We organise 30+ events a year, from small discussion events, through to larger conferences. Our events always “sell out”, and often, very quickly. If you are interested in talking to us about sponsoring an event, please get in touch with David Sinclair or Lyndsey Mitchell at ILC-UK (events@ilcuk.org.uk / 0207 340 0440).

The International Longevity Centre-UK is the leading think tank on longevity and demographic change. It is an independent, non-partisan think tank dedicated to addressing issues of longevity, ageing and population change.

Communities and Housing,Pensions,Quality of Life

Thursday 12th June; Committee Room G, House of Lords, Westminster, London; 08:30 (for a 09:00 start) – 11:00
Coffee and light refreshments will be served from 08:30.

Entry to Committee Room G is through the Cromwell Green (Visitor) Entrance. As queues and waiting times at this entrance can be unpredictable, we recommend that you arrive at the House of Lords as close to 08:00 as possible.

Many older people have equity tied up in their homes that could be used to provide them with a greater income in later life and improve their standard of living. Traditionally, the ways to unlock the equity in people’s homes have been through downsizing, equity release lifetime loans or home reversion plans. However, not everyone is in a position to downsize, there are pros and cons to each approach, and all have associated costs.

The Equity Bank would provide a new way for people to unlock the equity in their home. It would be a state agency which provides people with a low cost fixed lifetime income in exchange for a fixed share of the equity in their home. The Equity Bank would take a charge on the person’s home and recover the value of the equity from the person’s estate after their death.

The event was chaired by Baroness Sally Greengross, Chief Executive of the ILC-UK. Nick Kirwan, Director of the ILC-UK Care Funding Advice Network, opened the discussion. Professor Les Mayhew of Cass Business School and co-author of the paper 'The UK Equity Bank - Towards income security in old age' thened present the concept, after which Paul Burstow MP responded.  There was then time for questions and a general discussion.
 

The presentation slides from the event are available to view below:

Economics of Age,Future of Age,Pensions

Thursday 30th January 2014, 08:30 (for a 09:00 start) – 11:00 in Committee Room G, House of Lords, Westminster, London.

The Financial Services Consumer Panel, (FSCP) recently published a report which argued that the annuity market does not work well for the majority of consumers. The Panel felt that the “complex market” was “failing to deliver good outcomes for many consumers”.

The value of annuities is increasingly being questioned by journalists and opinion formers. Rates are improving but have been relatively low and too few individuals exercise choice or have access to the advice they need. Those in favour of other alternative income options, such as income drawdown, have signalled that it is the end of annuities. Yet, annuities offer significant benefits over other forms of pension income. A guaranteed income for life is considered a better option by some customers.
 
The debate, sponsored by Legal & General, a leading annuity provider, in conjunction with the International Longevity Centre - UK (ILC-UK) was held in the House of Lords, on Thursday 30 January 2014.

During the event we explored what the industry, government and the regulator needs to do to respond to the FSCP challenges and whether annuities are still fit for purpose. Or does the industry need to innovate in product design and access to flexible solutions that meet future customers’ expectations?

The event, chaired by Baroness Sally Greengross, firstly presented the views of a panel of six leading representatives from across the industry who have an interest in the at retirement market outlining whether they believe that annuities are still fit for purposes and if not, what other options they believe should be considered.

The panel included Sue Lewis, Chair of the Financial Services Consumer Panel; Dan Hyde, Personal Finance Editor of the Daily Telegraph; Tom McPhail, Head of Research at Hargreaves Lansdown and Chair of Pension Income Choice Association (PICA); Ros Altmann, Economist and former Downing Street adviser; Jane Vass, Head of Public Policy at Age UK and Tim Gosden, Head of Strategy for Legal & General’s individual annuity business.

Following the panel presentation the debate was then opened to the invited audience which included parliamentarians and senior representatives from across the industry. Senior representatives of charities, think tanks, government departments, regulators and selected media contacts who regularly write on this subject, were also been invited.


Agenda from the event

08:30 – 09:00
Registration and light refreshments
09:00 – 09:10
Introduction from Kerrigan Procter, Managing Director of Legal & General’s Retirement business and Baroness Sally Greengross
09:10 – 10:10
Presentations by the panel
10:10 – 10:55
Open discussion and Q&A
10:55 – 11:00
Close from Chair


View the slides from the presentations below:

Pensions,Work and Retirement

28th November 2013; 14:30 (for a 15:00 start) – 17:00; ILC-UK, 11 Tufton Street, Westminster, London, SW1P 3QB

Over the next year, ILC-UK, supported by the specialist insurance company, Partnership Assurance Group plc, plans to undertake a series of events to explore the relationship between our changing demography and public policy.

We started the series by exploring how proposals to change the way we undertake our Census may impact on our ability to understand our future society.

The Census was first carried out in 1801 - when the official population of Great Britain was revealed for the first time at 9 million.  But current plans may mean significant changes to the future  collection of data. In September 2013, the ONS initiated a three month consultation on the future of the national Census.

The ONS has proposed two options for reform. Either continuing with a Census each decade, but conducted primarily online; or using annual but smaller surveys in conjunction with existing government administrative data. The motivation is partly cost. However,  the ONS has also stressed that any decision needs to be based not on cost, but on how to get the best and most timely information given technological advances.

Census findings are a tool to help governments allocate spending and plan ahead. The smaller annual survey would identify demographic and social trends more quickly but would be less detailed and comprehensive.

The Census has uncovered social phenomena that would otherwise have remained hidden – slum housing, fertility rates and transport among them. For example, the 1971 Census revealed how many people were living without hot running water. These  findings can have a marked impact on policy. Danny Dorling, Professor of Human Geography at Oxford University, said “If you want to highlight the inequalities in a society there is no better way than to ask everybody how many bedrooms they have and how many people live in their house.”

The case for replacing the traditional Census with an annual alternative is based on a number of tenets, one of which is cost. The 2011 Census cost £480m; in 2021, the cost is expected to be £800m if the same, paper-based system were used. Replacing the Census would also allow for more timely data for planners and decision makers and could potentially avoid statistical surprises such as the unexpectedly big population growth uncovered by the 2011 Census.

The debate has fed into an ILC-UK response to the Census consultation.

Throughout this debate and resulting policy brief we explored:

  • How important is the Census to policy makers and industry (including the financial services industry)?
  • Might the loss of some very local data make identifying exclusion more difficult?
  • Might other datasets prove to be better than the Census in helping us understand our population and how it is changing?
  • Are there any unintended consequences of scrapping the Census in its current form?
  • How can we ensure that reforms to the Census do not risk our understanding of demographic change and ageing?

The write-up from the event can be viewed and downloaded here.


AGENDA

14:30 – 15:00
Registration

15:00 – 15:10
Welcome, Norma Cohen (Financial Times)

15:10 – 16:55
Presentations from:
Richard Willets (Director of Longevity, Partnership)
Professor Peter Goldblatt (Deputy Director, Department of Epidemiology & Public Health, UCL Institute of Health Equity)
Professor Heather Joshi (Professor of Economic and Developmental Demography, Emeritus Professor, Centre for Longitudinal Studies, Institute of Education University of London)
Phil Rossall (Research Manager, Age UK)
Professor Ludi Simpson (Beyond 2011 Independent Working group, University of Manchester)

Discussion/Q&A

16:55 – 17:00
Close, Norma Cohen (Financial Times)
 

 

The presentation slides from the event can be viewed below:

Economics of Age,Future of Age,Pensions,Work and Retirement

Private Breakfast Debate: Monday 30th September, Manchester (Outside the secure zone), 8:00 (for 8:15) to 9:45

Recent research by ILC-UK for Age UK (Tales of the Tallyman) found that three in ten (28% or 1.1 million), older people in debt were considered to be in “problem debt” and struggling to repay what they owed. Ten per cent of older people with unsecured debt – around 400,000 – were paying over £85 a week to service their debt.

It is widely acknowledged that debt problems seriously impact on people’s quality of life and relationships, but for the first time, this research showed that older people who enter problem debt are over twice as likely to experience marital breakdown as those who do not.

Stepchange, the UK’s leading debt charity, have reported growing concerns about older people in debt, reporting that the over 40s owe four times as much money as those aged under 25.

Following a successful partnership in 2010, ILC-UK and Personal Finance Research Centre PFRC at the University of Bristol have teamed up to work together on consumption and wellbeing in later life.  This work has been funded by the Economic and Social Research Council Secondary Data Analysis Initiative.

At this breakfast debate, PFRC at the University of Bristol will present new evidence on the nature of debt in old age. Stepchange will discuss their experience of debt and the older consumer and ILC-UK will present the findings of Tales of the Tallyman.

Following short presentations of the research, participants will be encouraged to debate policy solutions to tackle the challenges highlighted.

If you are interested in attending this breakfast event, please contact Lyndsey Mitchell on events@ilcuk.org.uk.

Pensions,Work and Retirement

Tuesday 3rd September, M&G, Governor’s House, Laurence Pountney Hill, London, EC4R 0HH, 16:00 for a 16:30 start – 18:30

Featuring Steve Webb MP, Minister for Pensions; Christopher Brooks, Age UK, and David Sinclair, ILC-UK, presenting findings from a new policy review of European innovations in supporting longer working lives.

Chaired by Baroness Greengross, CEO, ILC-UK and cross-bench peer

Venue: M&G, Governor’s House, Laurence Pountney Hill, London, EC4R 0HH

Date: Tuesday 3rd September, 16:00 for a 16:30 start – 18:30.

Europe needs older workers. Its long-term ageing population and recent economic hardships are creating huge fiscal and demographic pressures - pressures which could be greatly relieved if it can encourage its workers to remain in work for longer.

How is this to be achieved?

The European Union recently launched its Europe 2020 strategy which set employment targets of 75% for workers aged 20-64. However, with the old-age dependency ratio for the EU28 predicted to climb over 50% by 2050, much more still needs to be done.

In this event we heared UK and EU perspectives on how older workers can be supported, with contributions from Steve Webb MP, the UK Minister for Pensions; and Christopher Brooks, Age UK.

To inform this debate, ILC-UK launched a report at the event, supported by Prudential, which shares key policy approaches being taken across to support older workers.

Pensions,Quality of Life,Work and Retirement

House of Lords, Westminster, London; Thursday 13th June; 08:30 (for a 09:00 start) – 10:30
Coffee and light refreshments served from 08:30.

Demographic change means that more people will live past the point where they require care. As the increase in life expectancy looks set to continue, we need to develop enterprising and innovative ways to help people save and plan for this eventuality and bring new money into the care system. If people are to save for their future, especially people who are on lower incomes or are less wealthy, it is essential that they have opportunities to do so in a way that is simple, attractive, engaging, and safe, and which provides them with more choice about the care and support they would like. Equally, they must not be penalised for having done so through means tested support. This is what Personal Care Savings Bonds are intended to be all about.

This event, chaired by Baroness Sally Greengross, talked about the possibility of bringing new money into the social care system through Personal Care Savings Bonds. Co-author, Professor Les Mayhew of Cass Business School, presented this new concept before opening the debate for wider discussion.

'Personal Care Savings Bonds - a new way of saving towards social care in later life' can be downloaded from the ILC-UK Publications page.

The slides from the event can be viewed below:

Economics of Age,Pensions,Quality of Life,Work and Retirement

M&G, Governor's House, Laurence Pountney Hill, EC4R 0HH London

Tuesday 4th June, 08:30 (for 09:00 start) - 10:30

Chaired by: Baroness Sally Greengross (Chief Executive, ILC-UK); Speakers: Dr Stella Creasy MP, Brian Calvert (Financial Advocate, Age UK; Research presented by:
Dr Dylan Kneale (Head of Research, ILC-UK); Panellist: Sally West (Age UK)
 

Debt is commonly assumed to be a problem of the young and not of the old. New research carried out by ILC-UK and supported by Age UK examines the validity of this assumption and sets out the extent to which debt impacts on the lives of older people.

Over recent years, older people, in common with other age groups, have faced significant financial challenges. For older people, lower than expected returns on savings and decreases in annuity rates have reduced the income many retirees were expecting in later life. Increases in energy and food costs are also hitting older people on fixed incomes hard, while older workers are faced with unprecedented job and income insecurity. Could these new challenges have influenced the attitudes and behaviours of older people towards credit usage? And just how accurate are cosy depictions of older people as ‘squirreling savers shunning credit’ compared to the reality?

This new research explores the way in which attitudes towards borrowing vary by age before presenting new findings on levels of problem debt among older people. The characteristics associated with entering problem debt are explored in this research, as well as the outcomes of living with problem debt on the lives of older people.

Dr Dylan Kneale, Head of Research at ILC-UK, presented the findings of the research. Dr Stella Creasy MP, known for her parliamentary work around the field of debt, was a keynote speaker, while Sally West, Income and Poverty Strategy Adviser at Age UK, provided insight into the organisation’s work in providing debt counselling and advice for older people. Tom Wright, Chief Executive of Age UK, and Baroness Sally Greengross, Chief executive of ILC-UK, co-chaired the event and all took part in a panel debate after presentations.

The slides from the event are available below:

Pensions,Work and Retirement

23rd April 2013, The Lecture Hall, Methodist Central Hall, Westminster, London, SW1H 9NH, 16:00 (for a 16:30 start) - 18:30

The Committee on Public Service and Demographic Change has today published its report, stating “No Government so far has had a vision and coherent strategy [for an ageing society]; the current Government are no exception and are not doing enough to ensure our country is ready for ageing.

ILC-UK’s response to the Committee's report is available in the news section of our website at www.ilcuk.org.uk

The Committee, which is chaired by Lord Filkin, was appointed on 29th May 2012, to consider public service provision in the light of demographic change. During its evidence sessions it heard from a wide range of different stakeholders, government officials and government Ministers.

Lord Filkin presented the findings of the report at this joint debate with the Actuarial Profession on 23rd April. The report spans issues across ageing policy, reflecting Committee evidence sessions focused on a broad range of topics, from demography through to pension reform, working longer and changing aspirations of old age.

In this debate, we heared responses from key spokespeople, including Justin Russell, the Director for Ageing Society and State Pensions at DWP; David Sinclair from ILC-UK; and commentators from Joseph Rowntree Foundation and Deborah Cooper from the Actuarial Profession. The debate addressed the issues raised in the report, and the recommendations made by the Committee.

This event was live blogged: http://blyve.com/event/59577451b57f00540e040000

Agenda from the event

16:00 - 16:30
Registration

16:30 - 16:35
Welcome by Chair

16:35 -17:15
Presentation from:
Lord Filkin (Chair, the House of Lords Public Service and Demographic Change committee)

17:15 - 18:25
Panel Discussion/Q&A
Justin Russell (Director - Ageing Society and State Pensions, Department for Work and Pensions)
David Sinclair (Assistant Director, Policy and Communications, ILC-UK)
Claire Turner (Head of Team (An Ageing Society), Joseph Rowntree Foundation)
Deborah Cooper (Member of the Institute and Faculty of Actuaries’ Council and member of the Institute and Faculty of Actuaries’ Pensions Board)

18:25 - 18:30
Close by Chair

18:30 -
Drinks Reception

The presentation slides from the event are available below:

Pensions,Work and Retirement

7th November 2012, London, 08:30 - 10:00

On the 7th November, we will be hosting a private breakfast launch of ILC-UK’s “Advice and Small Pension Pots” policy report which sets out recommendations to ensure that the many people with small pension funds at retirement do not lose access to financial advice after the introduction of the Retail Distribution Review (RDR) in January 2013.

The report has been produced following the ILC-UK Retirement Income Summit, held at the Actuarial Profession and supported by Aviva and Partnership, earlier this year.

We are inviting journalists, senior politicians and policy experts to attend this launch and discuss the findings.

The implementation of the RDR is a once in a generation chance to raise professional standards in the advice sector and to change the way people pay for financial advice.

However, there is widespread concern that an unintended consequence of its implementation could be that those on modest incomes will be excluded from or priced out of the advice market.

In March 2012 the ILC-UK published a report entitled, The Retail Distribution Review and Small Pension Pots, which explored the impact the RDR would have on access to advice for those with small pension pots.

Alongside the report, the ILC-UK published an open letter to Mark Hoban MP (then Financial Secretary to the Treasury), Steve Webb MP (Minister for Pensions DWP), and Lord Adair Turner (then Chairman of the FSA), highlighting the need for action. The letter was signed by senior politicians across all parties, trade associations, providers, financial advisers and representative bodies. (http://www.ilcuk.org.uk/index.php/news/news_posts/press_release_government_and_fsa_must_act_now_to_protect_the_retirement_inc )

The decision to purchase an annuity or other retirement income product is extremely important and, for many, a once-in-a-lifetime and irreversible decision. The current situation is already sub-optimal:

  • The difference between the best and worst annuity rates can be up to 40%;
  • Too few exercise or fully understand the benefits of exercising the Open Market Option (OMO - the right to shop around for the best annuity rate)
  • Only 17% of people purchased an enhanced annuity (which can provide greater income in retirement for those who are eligible for health and lifestyle conditions), although 40% or more may be eligible.
  • 70% of those at retirement have pension funds of £40,000 or less

If you would like more information about the event, please contact events@ilcuk.org.uk.

Pensions,Work and Retirement

Private meeting at the Labour Party Conference - Manchester

The University of Manchester and the International Longevity Centre – UK will be holding a dinner debate to explore the future of work and retirement for those beyond state pension age.

The introduction of state supported pensions just over 100 years ago resulted in the emergence of “retirement‟ as a specific and substantive period of life. Between 1881 and 2008 the economic activity rates of UK men aged 65+ fell from 74 per cent to 10 per cent.  Yet this trend seems to be changing.

It is now two years since the introduction of the Equality Act, 2010 which made default retirement ages unlawful. Recent research published by the ONS highlighted increasing numbers of people working beyond retirement, many in part time roles. Effective retirement ages have increased over recent decades and working longer can have a positive well-being effect.

Lord Hutton recently argued that “We have designed much of our public policy concerning older people according to an image of life after 65 that is now redundant. The old notion that after this milestone in your life, all you can expect is decline and dependence is hopelessly outdated. We must assume that older people will participate actively in society and in the workplace for longer and to the best of their ability.”

Over dinner, we will explore:

  • the extent to which older people are working beyond 60
  • how the nature of work changes for people beyond 60
  • the future of retirement
  • the extent to which public policy is responding to the working longer agenda
  • why some older people are choosing to work longer and why many others leave the workforce early?
  • the impact of increases in State Pension Age on effective retirement age

We will focus a discussion on explicit policy ideas as to how Government and employers can best support individuals to work longer.

This is a 'by invitation only' event, however if you are interested in attending, please email events@ilcuk.org.uk.

Pensions,Work and Retirement

Wednesday, 20 June 2012; 12:30 (for a 12:55 start) to 19:00; The Actuarial Profession, Staple Inn Hall, High Holborn, London WC1V 7QJ

At the end of February 2012, ILC-UK, with the support of Partnership, published a report which explored the impact of the Retail Distribution Review (RDR) on people with small pension pots.

Whilst the report supported the principles of the RDR, it expressed worries about the creation of an ‘advice gap’ where the poorest and least well-off pensioners might fail to receive critical financial advice.

Since the publication of the report, Government, the FSA and HM Treasury have taken forward a number of positive policy initiatives, some of which addressed some of the issues in the ILC-UK report.  The ABI has developed a new code of conduct for members which will support the consumer to take the open market option. The DWP has been developing “operation big pension pot”. And the FSA has published guidance on simplified advice.

However, the problems highlighted in the ILC-UK report are far from solved and there remain a number of immediate challenges. The combination of the end of compulsory annuitisation, the introduction of the RDR, the growth in the number of small pension pots and the introduction of auto enrolment will require further policy action in the short term, and certainly before 1 January 2013.

This summit was convened with a view of creating a policy consensus to tackle the challenges ahead. Following the Summit, ILC-UK will publish a report which sets out the recommendations which emerge from the event.

The Retirement Income Summit focused on three specific themes. Senior representatives from Government, industry and consumer organisations debated

  • Post RDR financial advice may be beyond the means of the average person. How can we fill the advice gap?
  • People with average sized pension pots are entitled to reasonable outcomes. How can we improve the pensions annuity process for the consumer and industry?
  • Good regulation protects the consumer but it must not inadvertently damage the potential of products and services to increase pensioner income? How can we ensure that the length and complexity of communications required by legislation does not damage communications?

Agenda from the event

12:30 - 12:55
Registration / tea & coffee / a light sandwich lunch will be available
12:55 - 13:00
Welcome
Baroness Sally Greengross
13:00 - 13:30
Gregg McClymont MP – Shadow Pensions Minister
13:30 - 13:45
Lord Kirkwood – former Liberal Democrat Spokesperson for Work and Pensions 2007-10
13:45 - 14:00
Nigel Waterson – ILC-UK Trustee and former Shadow Pensions Minister
14:00 - 15:00
Post RDR financial advice may be beyond the means of the average person. How can we fill the advice gap?
Steve Groves – Partnership
Tom McPhail – Hargreave Lansdown
Roger Marsden – Aviva
15:00 - 15:20
Coffee Break
15:20 - 16:20
Good regulation protects the consumer but it must not inadvertently damage the potential of products and services to increase pensioner income? How can we ensure that the length and complexity of communications required by legislation does not damage communications?
Steve Lowe – Just Retirement
Jeff Prestridge – Mail on Sunday
Dean Mirfin - Key Retirement Solutions
16:20 - 17:20
People with average sized pension pots are entitled to reasonable outcomes. How can we improve the pension’s annuity process for the consumer and industry?
Jane Vass – Age UK
Alan Higham – Retirement Angels
Yvonne Braun – ABI
17:20 - 17:35
“Defined  ambition”
Mike Le Brun – DWP Private Pensions Policy and Analysis Division
17:35 – 17:45
Wrap up: Closing Panel Thoughts
Steve Groves – Partnership
Roger Marsden – Aviva
17:45
Close followed by drinks reception
Baroness Sally Greengross
 

During the course of the afternoon, delegates were asked to vote on a series of policy related questions. See below for the results.

Retirement income summit - voting results

Please view below for the speaker's presentation slides. Please note, speakers were given the option to present without additional slides.

Retirement Income Summit from ILC- UK
 

Members of the ILC-UK team were blogging from the event.

 

Pensions,Work and Retirement

European Economic and Social Committee, Bâtiment Jacques Delors (JDE) 99-101, rue Belliard, 1040 Bruxelles. 14:10 for 14:30 start, 18 June 2012

This event was hosted by the European Economic and Social Committee and was kindly supported by Prudential

The recently published White Paper (An Agenda for Adequate, Safe and Sustainable Pensions) highlighted the urgency for European action on pensions. The introduction stated:

Unless women and men, as they live longer, also stay longer in employment and save more for their retirement, the adequacy of pensions cannot be guaranteed as the required increase in expenditure would be unsustainable.

Together, longevity growth and the transition into retirement of the baby-boomers will have far-reaching economic and budgetary consequences in the EU, reducing the economic growth potential and exercising pressure on public finances.  (COM/2012/055)

The Commission highlighted that these challenges are “further aggravated by the current financial and economic crisis.” (COM/2012/055)

Later this year, the European Parliament will be discussing and drafting a report (with MEP Ria Oomen-Ruijten as rapporteur) on the Commission’s White Paper.

This debate considered how Europe's policy framework is supporting and engaging with the long term savings debate through both the Pensions White Paper and future regulation of pensions.

Alongside the debate, ILC will publish a draft report which will

  • Highlight the broad pensions/retirement saving context across Europe
  • Explore the potential context of the economic crisis in relation to pension saving
  • Consider broader cultural and social change which may influence the European role
  • Review recent developments including the Pensions White Paper.

This draft report was debated at the event and ILC will produce a final report incorporating the debate on the day (comments of participants will be non-attributable).

This event was organised by the ILC. There are three ILC members across the European Union. The ILC is an independent, non-partisan charity dedicated to addressing issues of longevity, ageing and population change. We develop ideas, undertake research and create a forum for debate.

ILC is a member of the International Longevity Centre Global Alliance (ILC Global Alliance), a multinational consortium consisting of member organisations. The Global Alliance aims to help societies to address longevity and population ageing in positive and productive ways, typically using a life course approach, highlighting older people's productivity and contributions to family and society as a whole.

The event toot the form of a panel discussion featuring speakers from the European institutions, followed by contributions from the audience.  The discussion, which took place in English, began at 14:30 and finished at 16:45.  Refreshments were available before and afterwards.


Speakers included:

  • Mervyn Kohler, Age Platform Europe Social Protection Group
  • Maureen O’Neill, European Economic and Social Committee
  • David Sinclair, International Longevity Centre
  • Fritz von Nordheim, European Commission
  • Xavier Verboven, Vice President, Labour Market Observatory of the EESC
  • Chris Verhaegen, Chair, EIOPA Occupational Pensions Stakeholder Group
  • Ria Oomen-Ruijten MEP, rapporteur of the European Parliament on the Whitepaper on Pensions
Pensions,Quality of Life,Work and Retirement

The Actuarial Profession, Staple Inn Hall, High Holborn, London WC1V 7QJ.

16:00 for 16.30 start, 25th April 2012.

ILC-UK was delighted to be working with Alliance Boots and the University College London School of Pharmacy to explore why public health has just got ‘personal’ and if such a trend will yield cost savings or cost some groups of society or sections of the economy more than others.

The event also marked the launch of a report produced by Professor David Taylor and Dr Jennifer Gill from the UCL School of Pharmacy, supported by Alliance Boots entitled ‘Active Ageing: Live longer and prosper? Towards realising a second demographic dividend in 21st century Europe’.

The debate focused on the balance between encouraging individual accountability and accepting collective responsibility for achieving longer lives and the consequent implications for health outcomes and cost.

The Coalition Government (like its predecessors) is trying to move away from the ‘nanny state’ towards ‘nudging’ people in the direction of choosing healthier behaviours.

Few people would question the desirability of encouraging more informed personal decision making to prevent avoidable illness. But too much reliance on individual choice and responsibility could fail those most at risk and potentially impose needless costs and losses on individuals, their families and the wider community. Promoting the behavioural and cultural changes needed to deliver better public health and keep NHS and social care costs as affordable as possible remains a pressing and complex challenge.

Subject areas discussed included:

  • The philosophical and political underpinnings of public health policy, including: social solidarity, fairness, entitlement, risk and personal responsibility. Are we in danger of unravelling the principle tenets of the Beveridge model welfare state in ways which may not only disadvantage the most vulnerable, but may in time increase financial pressures on other sectors of society?
     
  • Determining the boundaries of personal and societal level responsibility, and the legitimate as opposed to illegitimate need for publicly funded care and support. In areas ranging from smoking cessation to reducing the threat of an obesity driven diabetes epidemic, communities have to make tough choices between limiting risks and accepting the consequences of personal, social and corporate freedom.
     
  • The impact of current trends and possible future policy decisions in areas ranging from the costs of health and life insurance to the price of pensions for individuals and society.
     
  • The role of private employers in promoting and requiring healthy living.
     
  • The winners and losers if the trend towards personal responsibility continues, with particular regard to older people and disadvantaged groups and what impact could this trend have on the cost of care?

Agenda from the event:

16:00 – 16:30 
Registration and tea

16:30 – 16:40 
Welcome and introduction from chair, Baroness Sally Greengross

16:40 – 17:05
Professor David Taylor, Professor of Pharmaceutical and Public Health Policy - School of Pharmacy, UCL

17:05 – 17:30
Professor Nick Bosanquet, Professor of Health Policy - Imperial College London

17:30 – 18:25 
Panel Debate and Q&A

  • Tricia Kennerley, Group Healthcare Public Affairs Director - Alliance Boots
  • Martin Green, Chief Executive - English Community Care Association
  • Open debate

18.25 – 18.30 
Summary and close from chair, Baroness Sally Greengross

18.30   
Refreshments/networking

A copy of the report can be found here

Presentation slides* from the event can be viewed below:
* Professor Nick Bosanquet's slides are currently not availabe for public distribution

 

Pensions,Quality of Life,Work and Retirement

24th April 2012 16:15 to 19:00 ILC-UK, 11 Tufton Street

The UK has a chronic under-saving problem, which has been exacerbated by the financial crisis and economic downturn.  A high proportion of UK households have little or no saving or investment wealth, and these households are concentrated among those with the lowest incomes. The under-saving problem is compounded by indebtedness, especially for young people, and particularly acute in relation to saving for retirement. Relatively few households are setting aside sufficient funds for retirement.

At this event, ILC-UK launched a new paper, supported by the Friends Provident Foundation, which argues for the creation of a ‘financial citizenship’ framework. In the paper, by Dr Craig Berry and Valentina Serra, ILC-UK argue that whilst our livelihoods have never been more intimately engaged with the financial system, we lack any meaningful sense of what it means to be a citizen in a ‘financialised’ age. A ‘financial citizenship’ framework would outline the respective responsibilities of individuals and the state regarding saving.

Public policy-makers often assume that individuals have a responsibility to save, but the ILC-UK paper questions whether this should be accompanied by a stronger set of rights? The financial citizenship concept seems to complement the more prevalent notions of ‘financial inclusion’ and ‘financial education’ in that it involves addressing failures to interact with financial services (and a lack of capability in relation to, or knowledge about, financial services). Yet citizenship suggests a more expansive or ambitious form of participation, include the right to participate in collective decision-making around the operations of the financial system.

ILC-UK presented “Financial citizenship - Rethinking the state’s role in enabling individuals to save” at this event. The presentation will be followed by a panel response and debate.

During the discussion, we will debate:

  •     When it comes to issues around debt and saving, what exactly are our obligations as responsible members of society?
  •     What kind of resources are we entitled to in order to fulfil our responsibilities?
  •     Do we get a say in how rights and responsibilities are determined?

Agenda from the event

16:15 - 16:30
Registration

16:30 - 16:40  
Welcome and introduction: Baroness Sally Greengross

16:40 - 17:00 
Financial Citizenship and Saving: Dr Craig Berry

17:00 - 17:30 
Panel response and debate
Danielle Walker Palmour, Friends Provident Foundation
David Budworth, The Times

17:30 - 18:15
Discussion and debate

18:15 - 18:20
Closing remarks: Baroness Sally Greengross

18:20 -19:00
Drinks reception

A copy of the think-piece, Financial Citizehship, can be found here
 
Pensions

Royal College of Physicians of Edinburgh, 9 Queen Street, EH2 1JQ Edinburgh, 16:00, 14 June 2011

This event explored the financial circumstances and future economic prospects of young people, focusing in particular on the capacity and propensity of today’s young people to save for retirement.

A keynote address was followed by a panel debate and audience discussion.

Population ageing, leading to a declining old age support ratio, is likely to undermine the ability of the state to fund a decent standard of living for all individuals in later life. This has been exacerbated by the fiscal crisis. Increasingly, individuals will need to consider how to provide for themselves in retirement, if they are to avoid significant drops in standards of living.

Given the end of ‘jobs for life’, the persistence of youth unemployment, the difficulties associated with entering the housing market for young people, and the withdrawal or closure of defined benefit pensions schemes, there are valid concerns about the ability of today’s young people to meet this challenge. Under-saving is a significant problem in the UK today, especially among young people. Today’s young people, the first generation to have grown up with the internet, are renowned as a highly educated and demanding cohort. They are also deemed to be relatively irresponsible regarding financial issues.

However, there is evidence that today’s young people are in fact more likely to be saving than older cohorts and previous generations – but they are not necessarily saving sufficient amounts. Furthermore, they are not necessarily saving for retirement – preferring to save to fund large items of current consumption, or to get onto the housing ladder.

The government has been active in incentivising pensions saving, through retaining the previous government’s flagship NEST scheme, and declaring its intent to end the spectre of means-testing in the UK pensions system by moving towards a single, flat-rate universal pension. But will NEST provide adequate retirement incomes for all – or will young people ‘opt out’ of NEST in large numbers? Do young people understand enough about pensions for means-testing to act as a significant disincentive?

The event also saw the launch of a new report by Dr Craig Berry of the International Longevity Centre-UK titled Resuscitating Retirement Saving: How to Help Today’s Young People Plan for Later Life. The report, which has been sponsored by Prudential, looks at the financial and economic circumstances of young people today, the socio-economic trends young people will face in coming decades, and what we can learn from behavioural economics to encourage young people to save more for their own retirement.

Some of the questions the debate addressed were:

  • What will the future look like for today’s young people?
  • What type of financial education will be most effective, and who is best placed to provide advice to young people?
  • Following the financial crisis, how can we restore trust in financial services?
  • How can we nurture a savings culture?
  • Can we ensure that that NEST is successful in increasing pensions saving rates?
  • Should young people be encouraged to save for a pension rather than invest in property?
  • Are today’s young people a ‘jilted generation’?
  • What more can we learn from behavioural economics?

Agenda from the event:

4.30pm
Welcome from Chair, Stewart Ritchie

4.35pm
Craig Berry

4.55pm
Lawrence Churchill, Chair, NEST

5.15pm
Wendy Loretto, University of Edinburgh
Tim Fassam, Prudential
Liam Beattie, former Vice-Chair of the Scottish Youth Parliament
Tam Baillie, Scotland’s Commissioner for Children & Young People

5.45pm
Panel debate

6.30pm
Close/reception

Pensions

Governor's House, Laurence Pountney Hill, EC4R 0HH London, 16:00, 07 June 2011

This event explored the financial circumstances and future economic prospects of young people, focusing in particular on the capacity and propensity of today’s young people to save for retirement.

A keynote address was followed by a panel debate and audience discussion.

Population ageing, leading to a declining old age support ratio, is likely to undermine the ability of the state to fund a decent standard of living for all individuals in later life. This has been exacerbated by the fiscal crisis. Increasingly, individuals will need to consider how to provide for themselves in retirement, if they are to avoid significant drops in standards of living.

Given the end of ‘jobs for life’, the persistence of youth unemployment, the difficulties associated with entering the housing market for young people, and the withdrawal or closure of defined benefit pensions schemes, there are valid concerns about the ability of today’s young people to meet this challenge. Under-saving is a significant problem in the UK today, especially among young people. Today’s young people, the first generation to have grown up with the internet, are renowned as a highly educated and demanding cohort. They are also deemed to be relatively irresponsible regarding financial issues.

However, there is evidence that today’s young people are in fact more likely to be saving than older cohorts and previous generations – but they are not necessarily saving sufficient amounts. Furthermore, they are not necessarily saving for retirement – preferring to save to fund large items of current consumption, or to get onto the housing ladder.

The government has been active in incentivising pensions saving, through retaining the previous government’s flagship NEST scheme, and declaring its intent to end the spectre of means-testing in the UK pensions system by moving towards a single, flat-rate universal pension. But will NEST provide adequate retirement incomes for all – or will young people ‘opt out’ of NEST in large numbers? Do young people understand enough about pensions for means-testing to act as a significant disincentive?

The event also saw the launch of a new report by Dr Craig Berry of the International Longevity Centre-UK titled Resuscitating Retirement Saving: How to Help Today’s Young People Plan for Later Life. The report, which has been sponsored by Prudential, looks at the financial and economic circumstances of young people today, the socio-economic trends young people will face in coming decades, and what we can learn from behavioural economics to encourage young people to save more for their own retirement.

Some of the questions the debate addressed were:

  • What will the future look like for today’s young people?
  • What type of financial education will be most effective, and who is best placed to provide advice to young people?
  • Following the financial crisis, how can we restore trust in financial services?
  • How can we nurture a savings culture?
  • Can we ensure that that NEST is successful in increasing pensions saving rates?
  • Should young people be encouraged to save for a pension rather than invest in property?
  • Are today’s young people a ‘jilted generation’?
  • What more can we learn from behavioural economics?
Pensions

The Actuarial Profession, Staple Inn Hall, High Holborn, London, WC1V 7QJ, 16:00, 15 June 2010

Kindly supported by Aviva

A series of reforms to the UK pensions system are being implemented as we speak. For instance, the female state pension age is rising, the number of NICs qualifying years needed for a full basic state pension has been reduced, and the State Second Pension is becoming more flat-rate. In 2011 the National Employment Savings Trust will spring into life, and tax relief for the highest earners will be restricted. Beyond that, the earnings link will be restored, and state pension age will rise for men and women to 68. Will any of this change following the general election – and where does pensions reform go from here?

Without question, the ground shifted under the pensions reform agenda as the economy experienced the effects of financial crisis. But while affected by the economy, pensions reform has not yet been unduly affected by politics. The reforms that emerged from the Pensions Commission, chaired by Adair Turner, have enjoyed remarkable cross-party consensus.

Whether this remains the case is open to debate. There are several issues on the horizon for pensions reform that will present difficult choices and bold policies – both today and for generations to come. There is also a clear need to broaden the debate to retirement income more generally, involving issues around financial services, employment, cost of living, etc.

How to incentivise individuals to save for their own retirement was one of the main objectives of the pensions reform agenda; it is an issue which has not yet been resolved, not least because it has been clouded by the economic downturn. Clearly, we need to continue to tackle pensioner poverty, while overcoming the inherent savings disincentive of means-tested support. Therefore, the progress of NEST will have to be closely monitored to ensure the right incentive structure is in place. But perhaps more importantly, we need to consider what the right balance is between the various strands of state provision. Many argue that a simpler and more generous residency-based state pension could improve incentives.

The economic downturn has also brought other challenges, such as how the state should protect pensions saving in the future, and whether pensions tax relief should be reformed.

Introducing greater flexibility into pensions saving may be one way of providing incentives. As such, allowing early access to pensions saving has been suggested, to enable individuals to partly drawdown their savings at times of greatest need. So too has an end to compulsory annuitisation.

Annuities in general have been subject to debate recently. How to provide individuals with meaningful choices when they reach retirement, in the context of wider asset decumulation options, will be an important challenge for the pensions system in the future.

Some of the questions the debate addressed were:

  • How can we help individuals to make the right choices on retirement?
  • What is the right balance between universal and means-tested support in pensioner benefits?
  • Is the restoration of the earnings link safe?
  • Should the state pension age rise further and faster?
  • How can the consensus around NEST be maintained?
  • Will greater flexibility in pensions schemes incentivise saving?
  • Should tax relief on pension contributions be reformed?
  • How can the annuities market be shaped to enable more choice for individuals?
  • What is the future of pensions protection?

Agenda from the event:

16.00-16.30
Registration and refreshments
16:30–16:35
Welcome & opening remarks by Actuarial co-chair: Charles Cowling, Pension Capital Strategies.
16:35-16:40
Introduction from Paul Goodwin, Head of Pensions, Aviva.
16:40-16:45
Introduction by co-chair, Baroness Sally Greengross, International Longevity Centre-UK.
16:45-17:05
Steve Webb MP, Minister of State for Pensions.
17:05-17:35
Panel Response:

  • Baroness Patricia Hollis, House of Lords;
  • Lawrence Churchill, Chair Designate of NEST (National Employment Savings Trust), Personal Accounts Delivery Authority; and
  • Chris Curry, Research Director, Pensions Policy Institute.

17:35-18.25
Audience discussion with speakers.
18.25-18.30
Close and drinks

Economics of Age,Pensions

The Actuarial Profession, Staple Inn Hall, High Holborn, London, WC1V 7QJ, 16:00, 13 October 2009

Supported by Age Concern and Help the Aged

Within the context of the economic downturn, the ILC-UK, in partnership with the Actuarial Profession and Age Concern and Help the Aged, debated the current state of play in relation to decumulation policy.

The recent historical low in interest rates has highlighted the dependence that some retirees have on their savings. For many pensioners in the UK, perhaps especially those with relatively modest savings held in bank or building society accounts, recent economic events have created uncertainty and for some real financial difficulty. Not only have many seen their incomes fall to unexpectedly low levels but some have faced the fear of losing their money as banks around the world face difficulties or even collapse. In maintaining levels of income, some pensioners may now be eroding their capital.

Speakers at the event were:

  • Professor David Blake, Cass Business School
  • Jane Vass, Age Concern and Help the Aged
  • Jackie Wells, Fellow, ILC-UK
  • Niki Cleal, PPI


The speakers set out their views on different aspects of decumulation. Jane Vass set out new thinking on pension annuities and Jackie Wells presented new work which makes the case for purchased life annuities for people who want a guaranteed income in later life. Jackie's presentation can be downloaded here and her report can be downloaded below. Jane's presentation can be downloaded here. David Blake, Professor of Pension Economics from Cass Business school and Niki Cleal, PPI contributed their expertise on decumulation policy. Niki's presentation can be dowloaded here. Tom Boardman, Prudential joined the panel for the audience discussion.

Thanks to Age Concern and Help the Aged for their support in making this event possible.

Pensions

The Actuarial Profession, Staple Inn Hall, High Holborn, London, WC1V 7QJ, 16:30, 24 March 2009

A public debate to explore how recent economic turbulence impacts the UK pension reform agenda, made possible by the support of Xafinity Paymaster.

It has been a remarkable year: the freezing of the global financial system; the effective nationalisation of the UK banking industry; rising job insecurity and inflation volatility.

In the background to these historic events, the UK is quietly engaged in a major raft of pension reforms centred around Personal Accounts, which seek to significantly change the savings habits of millions of UK workers.

Yet when the Government passed the Pensions Act in July 2007, few had planned for what was about to unfold. As the UK faces up to a sharp recession and slower economic growth, there is a clear need to take stock and reflect on how pension reform will navigate this changed environment.

This debate explored the questions:

  • What do the dramatic events of the last year mean for UK pension reform?
  • How will young workers targeted by the Government, buffeted by job insecurity and falling house prices, react to Personal Accounts?
  • Will recent turbulence actually work in favour of Personal Accounts, for example, given many younger workers will no longer regard investing in property as the best form of retirement saving?


The panel for this debate included:

  • Tim Jones, Chief Executive, Personal Accounts Delivery Authority
  • Niki Cleal, Director, Pensions Policy Institute
  • Sir Nicholas Montagu, Xafinity


Agenda from the event:

16.00 - 16.30
Registration and Tea
16.30 - 16.35
Welcome by Chairs: Seamus Creedon, Institute of Actuaries and Baroness Sally Greengross, Chief Executive, ILC-UK
16.35 - 16.50
Presentation by James Lloyd, Head of Policy & Research, ILC-UK
16.50 - 17.00
Nigel Waterson MP, Shadow Pensions Minister & Shadow Minister for Older People (TBC)
17.00 - 17.30
Panel Discussion
17.30 - 18.25
Audience Discussion
18.25 - 18.30
Summary by Chair
18.30
Close and Drinks

Pensions

The Actuarial Profession, Staple Inn Hall, High Holborn, WC1V 7QJ, 16:00, 21 March 2007

How should the Government sell Personal Accounts and what should its retirement savings message be?

A panel of guest speakers explored issues around the second Pensions White Paper, and specifically proposals for auto-enrolment into Personal Accounts, and what this means for the Government’s message to individuals on retirement saving.

The introduction of Personal Accounts will be the first time in the UK that inertia in financial behaviour - a major cause of under-saving - will actually be used to help individuals save. Faced with the choice of whether to opt out of Personal Accounts, many employees are likely to display inertia, remaining in the scheme, but believing that they have ‘dealt’ with saving for their retirement.

The Government will, therefore, have to sell Personal Accounts to individuals, while simultaneously encouraging them to undertake additional saving; that is, to both do nothing and take action. The Government’s savings message will need to be finely tuned; emphasising the urgent importance of individual saving, without undermining the validity or perceived value of Personal Accounts.

Any savings message is dependent on the vehicle used to deliver it. The Government’s message on saving will have to reference current debates on financial capability, and the recent announcement of a Government review of generic financial advice. This raises the question: How should the Government’s message on retirement saving be delivered in this new era?

The debate on Wednesday 21 March 2007 began with an introductory address from Adrian Boulding, Wealth Policy Director of Legal & General.

Guest panelists included:

  • Niki Cleal of the Pensions Policy Institute
  • Sue Regan, Chief Executive of the Resolution Foundation
  • Nigel Peaple, Director of Policy, National Association of Pension Funds
  • Simon Gadd, Managing Director Annuities, Legal & General
  • Dr Deborah Cooper, Actuarial Profession
Pensions

The Actuarial Profession, Staple Inn Hall, High Holborn, London WC1V 7QJ, 16:01, 14 June 2006

Guest speakers at the event are Lord Adair Turner, Chair of the Pensions Commission; Professor Carol Jagger from the Department of Health Sciences at the University of Leicester; and Professor Les Mayhew who is with the Faculty of Actuarial Science and Insurance at CASS Business School.

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