In particular, 42% of respondents identified cyber risk as a top priority, while 36% highlighted DC small pot consolidation as a priority, followed by dashboards (34%) and DB surplus refunds (34%)
An “overwhelming” majority (94%) of pension professionals agree that UK pensions require some form of further change, with 31% expressing pessimism regarding the current system, according to research from Aon.
The poll, taken at its 2024 Pension Conference series, found that despite the unprecedented amount of regulatory change experienced in the past few years, less than a tenth (6%) of respondents were optimistic about the UK pensions system as it currently stands.
Nonetheless, respondents were more divided when asked in which areas they wanted to see the government and The Pensions Regulator make changes.
In particular, 42% of respondents identified cyber risk as a top priority, while 36% highlighted DC small pot consolidation as a priority, followed by dashboards (34%) and DB surplus refunds (34%).
Despite significant regulatory change to the UK pensions system in the past few years to both DB and DC pensions, it is sadly telling that more than 90% of respondents stated that the UK requires yet further changes to its pension system, according to Aon partner and head of UK retirement policy, Matthew Arends.
He also suggested that these results are “all the more pertinent” given that Aon’s Global Pension Risk Survey (GRPS) showed that regulatory burden and political uncertainty are big concerns for schemes.
Indeed, Aon’s GRPS highlighted the industry’s concern with the risk posed to trustees and sponsors from the pace and volume of regulatory change that has recently occurred, with regulatory risk identified as the most pressing concern facing DB schemes.
Respondents to the GPRS highlighted both the volume of regulatory change already required of schemes and the full pipeline of changes that are on the way as creating significant resource challenges, Arends added.
Even with this background, our pension conference attendees overwhelmingly responded that further change is needed, he said.
Navigating regulatory volatility is inevitably a concern for schemes, with trustees and sponsors facing challenges in ensuring risks and opportunities are prioritised appropriately, Arends added.
He said: Even so, further changes to the system are still perceived as a way to provide better outcomes.