Bringing Gen Z into the Pensions Debate 

Attending Pensions UK Annual Conference in Liverpool was a real privilege. Being the first person from SEC Newgate to attend through Pensions UK's Future Leaders Programme made the experience even more rewarding. 

The Future Leaders Programme was launched to help introduce the next generation of talent to the pensions and investment industry, providing opportunities to learn from experienced professionals and develop a deeper understanding of the sector. Having been a business member of Pensions UK, I was fortunate to attend the conference, take part in industry discussions, expand my network and experience first-hand the issues shaping the future of retirement saving in the UK. 

What struck me most was the emphasis placed on younger people. Alongside Future Leaders participants, students also attended the conference as part of this, making it encouraging to see so many young people engaging with discussions on retirement saving. At a time when many are balancing housing costs, everyday expenses and other financial pressures, that level of engagement felt particularly positive. 

Over the past two years, I've found pensions to be one of the most fascinating sectors I've worked in. I entered the industry during a period of significant change. The abolition of the Lifetime Allowance, a new government and pensions minister, major inheritance tax reforms affecting pensions, new funding requirements for DB schemes and the continued rollout of pensions dashboards have all demonstrated how quickly the landscape is evolving. 

The challenge that remains 

What I heard repeatedly in Liverpool was that one of the industry's biggest challenges remains the same: ensuring people are saving enough for retirement in the first place. 

One of the strongest messages from the conference came from Pensions Commissioner Baroness Jeannie Drake, who described pensions adequacy as "a system challenge everyone must play a part in resolving". That sentiment resonated throughout the event. While discussions ranged from policy reform and regulation to investment strategy, the question of how the industry can deliver better outcomes for savers was key. 

Jeannie also highlighted that the sector is "relying on investment returns to reduce undersaving", which she said is "no use when saving levels are so low". The scale of that challenge is significant. The Pensions Commission estimates that 15 million people are currently undersaving for retirement, which could rise to 19 million without action.   

Perhaps most striking is that this comes despite the huge progress the industry has already made. Automatic enrolment has helped increase the proportion of eligible employees saving into a workplace pension from 55% in 2012 to 89% today. The next challenge is not simply getting people to save, but helping them save enough.  

These are issues I have become increasingly familiar with through my work at SEC Newgate. Conversations across the pensions industry have shown me just how important questions around adequacy, engagement and communicating the value of long-term saving have become. 

As a Gen Z, it is often talked about as a group the pensions industry needs to engage, but I would like to see more young people included in the conversation itself. Seeing around 80 students attending in Liverpool, alongside those of us taking part through Future Leaders, felt like a positive step in that direction. 

The conversations I heard in Liverpool left me optimistic. The challenges facing the pensions system are significant, but so too is the commitment across the industry to address them. If we want the next generation to engage with pensions earlier, we need to keep finding ways to bring them into these conversations.