The majority of pension professionals are not confident that the triple lock will exist in its original formal in five years time.
This research from the Pensions Management Institute (PMI) found that 81 per cent of respondents did not expect this long-standing commitment to be retained after it was amended on a temporary basis this year.
The PMI also found that this was part of a broader dissatisfaction amongst pensions professionals with the government’s handling of pensions policy.
Fewer than half of respondents (49 per cent) are satisfied with the direction of pensions policy over the last six months, with is a significant drop from the 61 per cent who said they were satisfied when the same research was conducted a year ago.
In total 56 per cent of those surveyed now say they are pessimistic about the direction of pensions policy over the next six months, with only 40 per cent optimistic, a drop of 10 percentage points when compared to June 2021.
Fewer than a third (32 per cent) of respondents are satisfied with the Government’s handling of the increase of the normal minimum pension age to 57 from 2028.Complaints include a lack of clarity and communication with the public by the Government about the changes.
Despite this sense of dissatisfaction in the industry, more than half (58 per cent) of those surveyed have been happy with the work of the Pensions Regulator over the past six months with only a third (34 per cent) dissatisfied. Further, two thirds (67 per cent) are confident that it will focus on the right areas in the next six months. This figures has increased from last year.
The survey also outlined some areas for improvement in terms of diversity and inclusion in the pensions industry. Almost half of those surveyed (49 per cent) said their board did not have a diversity and inclusion policy, while only just over a quarter (28 per cent) of respondents said their board did have such a policy.
The majority of those surveyed recognised the benefits of diversity and inclusion, with 58 per cent mentioning the avoidance of groupthink and 55 per cent citing the more accurate representation of the scheme membership as the biggest benefits.
Rosie Lacey FPMI, vice president of the Pensions Management Institute says: “This year’s PMI Pulse survey paints a mixed picture of the outlook of pensions professionals. Our research suggests that the government faces an uphill climb to convince the industry that it understands the most pressing issues and is taking action to tackle them.
“The lukewarm feelings of those surveyed about the direction of pensions policy over the past six months and the six months ahead should be cause for reflection among officials. In particular, questions about the future of the pensions triple lock and the handling of the increase to the normal minimum pension age seem widespread. These are surely issues which the Government should confront if they wish to have the confidence of the pensions industry.
“In contrast to the respondent’s feelings about the future of pensions policy, those surveyed seem satisfied with the work of The Pensions Regulator’s actions over the past six months and confident in its direction for the months ahead. Clearly there are mixed feelings amongst the pensions professionals about the current state of the industry and what lies ahead.”
The post Pension professionals doubt triple lock will continue appeared first on Corporate Adviser.
