Financial inclusion is the “next biggest risk” that the pensions industry needs to grapple with, according to Standard Life senior workplace proposition manager and master trust DE&I lead, Femi Adigun.

Speaking at the Pensions and Lifetime Savings Association (PLSA) Annual Conference, Adigun stressed the need for the industry to address financial inclusion as part of its efforts to improve pensions adequacy, warning that “there’s no avoiding it”.

He stated: "Just as climate risk or climate change was a material risk to investments and to the future of this of this society, financial inclusion is the next biggest risk that we need to grapple with as an industry if we want to move the dial on pension adequacy.

“We have a huge challenge ahead of us and employers will want to ensure that we can design pension strategies that are more inclusive, meeting day-to-day needs of members," he continued.

“As trustees, you also have a fiduciary duty, but I think the growth of environmental, social and governance (ESG), and given financial inclusion can fit nicely in the 'S' aspect', it aligns well.

"We need to provide the tools and resources so that people have the opportunity to improve their pension adequacy."

Adigun also emphasised the need for collaborative efforts to tackle EDI issues, stating that “fundamentally we need to take a holistic approach”.

“We need to work together and actually drive the change that we want to see. So thank you to everybody,” he said.

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