I can hardly believe it, but here we are – a couple of days away from Christmas!

After a whirlwind month and an even busier year, it’s time to take a step back and reflect on what’s been happening in the world of pensions in 2024.

Which parts of the sector have been making strides and creating real advancements earning them a spot on Santa’s nice list, and which areas might deserve a lump of coal in their stocking this year?

First up on the nice list this year was the introduction of collective defined contribution (CDC) schemes to the UK, with Royal Mail setting the stage for broader CDC adoption which could be a game-changer for pensions.

Several pieces of legislation also found themselves on the nice list this year, including The Pensions Regulator’s (TPR) long-awaited General Code of Practice, DB Funding Code, and the CDC compliance and enforcement policy.

Despite delays last year, TPR’s new DB Funding Code officially came into force in November, replacing the existing 2014 framework and securing its place on the nice list, after being on the naughty list last year.

Advances in environmental, social, and governance (ESG) and sustainability reporting also deserve a spot on the nice list. A 30 per cent increase in organisations adopting the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations highlighted the industry’s dedication to sustainability.

Of course, not everything has been well-behaved this year, and there are a few areas that might make it onto the naughty list this year.

Despite the growing excitement for pensions dashboards, dashboards may end up with a lump of coal this year due if progress does not continue as expected, with some in the industry raising concerns over the future of commercial dashboards, after the government announced plans to prioritise the MoneyHelper dashboard.

Another element of the pension industry on the naughty list was the lack of movement auto-enrolment.

Hopes for the lower-earning limit removal were dashed, as no progress was made on expanding auto-enrolment to lower earners and young people. Not quite the Christmas present many were hoping for!

The Autumn Budget’s proposal to extend inheritance tax to pension pots also caused concern, as many in the industry said careful implementation was needed to avoid undermining pensions’ reputation as a tax-efficient savings vehicle.

Unfortunately, pension scams remained a persistent issue, with research finding that one in seven UK adults have been targeted by a pension scam.

Scammers seem to keep appearing on the naughty list year after year, and it’s time they got nothing but coal in their stockings!

So, if I were writing to Santa on pensions this year, I would ask for some changes in the year ahead.

For starters, I am keen to see better education and communication for members.

Throughout 2024, Pensions Age had a year-long focus on financial literacy, with several articles and features highlighting the need for member engagement and education at all stages of their lives.

If we could only receive the gift of clear and effective communication, we could ensure that more people fully understand their pensions and make informed decisions. That’s a present everyone would appreciate!

I’d also ask to see progress on small pots consolidation, making it easier for members to manage their pensions in one place.

With so many people having multiple pension pots, legislation that encourages consolidation and simplifies the process of reducing lost or forgotten pensions would be a great help in the year ahead.

Finally, I would also wish for a significant reduction in pension scams. I hope in 2025 we will see stronger protection for savers in this area and more effective resources to raise awareness and identify and prevent scams before they can harm.

Christmas is a time for reflection and resolution, and the pensions industry is no exception.

As we hang up our stockings, drink Bailey's hot chocolate, admire the Christmas lights, and look to 2025, let’s celebrate the progress we’ve made while tackling the challenges ahead.

Here’s to a new year full of growth, engagement, and better retirement outcomes for all.

Merry Christmas from me and all of us here at Pensions Age!

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