Pensions system places too much risk on individuals - IFS

Director Paul Johnson's warnings

clock • 2 min read

Workplace pensions look more like individual savings pots as too much risk is loaded onto members, Institute for Fiscal Studies (IFS) director Paul Johnson is set to warn.

Johnson, who is due to speak at a lecture tonight marking the Government Actuary's Department's centenary, will argue while current pensioners are on average better off than ever and the introduction of auto-enrolment (AE) is drastically boosting workplace pension savings, not everything is working well in the pensions industry. In his speech, Johnson will praise AE, mentioning the high volumes of members in employer-sponsored pension schemes, with seven in 10 now in these schemes. However, he will criticise low contribution rates and warn that defined contribution schemes "place all ris...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

What role can advisers play in closing the gender pension gap?

What role can advisers play in closing the gender pension gap?

Advisers are uniquely placed to influence the gender pension gap

Olivia Perry
clock 02 July 2025 • 7 min read
TPR cross-sector working group initiative to 'bring pensions into the digital age'

TPR cross-sector working group initiative to 'bring pensions into the digital age'

Regulator intends it to be a ‘pivotal force’ in shaping the future of pensions

Holly Roach
clock 02 July 2025 • 3 min read
Why the real problems of the pensions dashboard are yet to start

Why the real problems of the pensions dashboard are yet to start

'Its aims seem not only less relevant but potentially problematic'

James Floyd
clock 23 June 2025 • 5 min read