The Only Way is Up? Britain’s challenge to raise pension contribution rates

The Only Way is Up
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Date(s) - 12/06/2013
9:00 am - 11:00 am

Strategic Society Centre

Twitter hashtag: #onlywayisup

Speakers at this event include:

  • Professor David Blake, Cass Business School
  • Richard Wilson, Senior Advisor, NAPF
  • James Lloyd, Director, Strategic Society Centre
  • Dr Yvonne Braun, Head of Savings and Retirement, Association of British Insurers
  • Adrian Richards, Deputy Director – Pensions and Ageing, Department for Work and Pensions

The event will be chaired by Norma Cohen, Demography Correspondent of the Financial Times. 

Auto-enrolment represents a revolution in workplace pension saving, but will not be enough to deliver adequate retirement incomes – as pension commentators have long pointed out.

Benchmark contribution levels were deliberately set at the low level of 8%, with the task of lifting them deferred until participation in workplace pension saving had been successfully raised.

With auto-enrolment finally underway and reforms due to complete in 2018, the time is now right to consider the next grand challenge for UK private pension saving: raising contribution levels.

However, although there is wide consensus that 8% of earnings is insufficient, there is much less agreement as to what adequate contribution levels are for different groups of workers, how to achieve them, and when.

This public debate will therefore explore:

  • What exactly is an adequate pension contribution rate? How does it vary by earnings, life stage, preferences, cohort and trends in economic growth?
  • Should policymakers aim for a universal, benchmark contribution rate or opt for a more individualized approach?
  • What are the potential approaches for lifting contribution rates such as regulation, education, incentives and behavioural interventions?
  • What should be the balance between boosting employer and employee contribution rates?
  • What do long-term economic and mortality trends mean for defining an adequate contribution rate for the workforce? Could this eventually be beyond what workers will voluntarily accept?
  • Is the UK economy and Exchequer ready for high levels of participation and contribution rates across the workforce? If not now, when?

This event is free and open to all; however, registration is required.

You can view the slides from this event below:

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