WELCOME Generation veXed: solving the retirement puzzle Thursday 7 th November 2019 www.pensionspolicyinstitute.org.uk Twitter: #PPIlaunch @PPI_Research
Thank you to our sponsor Twitter: #PPIlaunch @PPI_Research
Welcome from sponsor Clive Bannister, CEO Phoenix Group Twitter: #PPIlaunch @PPI_Research
Welcome from the Chair Chris Curry PPI Director Twitter: #PPIlaunch @PPI_Research
Key findings Anna Brain Daniela Silcock Associate Policy Head of Policy Researcher Research, PPI PPI Twitter: #PPIlaunch @PPI_Research
Landscape changes lead to changes to working and saving patterns, policy and risk levels … changes in the economy , … employment patterns , pensions landscape and income , accumulation , labour market which affect assets and draws on people’s… income are driving… …risks to the adequacy, …debate, decisions and sustainability and flexibility actions from government , of retirement portfolios which industry, employers and in turn can inform… savers to drive...
State and private pension income is decreasing but could return to 2016 levels around 2060 Weekly mean amounts of pension, by pension type and year reaching SPa, 5 year moving average, 2014 earnings terms. £300 State Pension DB schemes DC schemes £250 Weekly pension income £200 £150 £100 £50 £0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 Year reaching State Pension age
Members of Generation X may struggle with sustainability, adequacy and flexibility Millennials: 1981-2000 (age 19-38) Generation X: 1966-1980 (age 39-53) Baby Boomers: 1946-1965 (age 54-73) Key concern: SUSTAINABILITY Key concern: ADEQUACY Key concern: FLEXIBILITY • Generation X will reach retirement in the next 12-28 years • DB provision declines; reductions in the proportion of State Pension some will receive; an increased likelihood of renting, indebtedness and giving or receiving care, all mean greater risk of retirement income that is not adequate, or sufficiently sustainable or flexible • Coordinated moves by policy-makers, industry and employers could help Generation X improve future quality of life
What labour market risks do Generation X face? Key areas of risk: Gender Part time and Those leaving The self casual workers employed the labour Pensions market early Gap
What can be done to mitigate labour market risks?
What pensions risks do Generation X face? Key areas of risk: Less time Less State Transferring in Pension sustainable DB automatic income Income enrolment
What can be done to mitigate pensions risks?
What economic risks do Generation X face? Key areas of risk: Debt Affordability of pension contributions and housing Lower returns and equity growth Renting in retirement
What can be done to mitigate economic risks?
Conclusions Generation X face adequacy risk resulting from lower pension saving levels but also sustainability and flexibility risk There is still time to act to reduce risks for Generation X Policy, industry and employer moves taken today will also help Millennials
The Chatham House Rule The remainder of the event is held under The Chatham House Rule When a meeting, or part thereof, is held under the Chatham House Rule, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed.
Response from the panel David Fairs, Teresa Fritz, Alastair Reed, Executive Director of Senior Policy Manager, Policy Adviser - Money Regulatory Policy, Analysis and Advice, Money and Pensions service Which? The Pensions Regulator Please observe the Chatham House Rule
Panel Discussion Chaired by Chris Curry (PPI) David Fairs Jenny Holt Alastair Reed The Pensions Regulator Phoenix Group Which? Teresa Fritz Daniela Silcock MaPs PPI Please observe the Chatham House Rule
Questions and Answers Please observe the Chatham House Rule
Closing Remarks Please observe the Chatham House Rule
Thank you for attending today… Thank you to our research sponsors Please stay and join us for a drink and networking.
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