The government has been urged to "flip the script from crisis to confidence" in its upcoming pension adequacy review, which is anticipated to be announced during the Chancellor's Mansion House speech tomorrow (15 July).

Industry experts have already been keen to share their top recommendations for the anticipated review, with some calling for the government to review auto-enrolment contribution levels.

However, Rathbones financial planning director, Olly Cheng, warned that while it was clear that further action is needed to drive better outcomes in retirement, this represents "a very fine line" for the government to walk.

"Any increased contributions from employees could drive people who are feeling their budget is already squeezed to opt out, making the problem worse," he warned.

He admitted that an increased burden on employers as part of the solution seemed "inevitable", explaining that the quid pro quo was added cost pressures on businesses already contending with higher national insurance contributions, which could, in turn,
impact employment prospects and growth.

"Getting this balance right is crucial," he urged.

Cheng also noted that the pensions bill had already begun exploring how pooling pension pots and simplifying scheme mergers could help alleviate some of the cost and administrative burden on employers and schemes, but acknowledged that these changes would take time.

Echoing the need for action, Institute and Faculty of Actuaries (IFoA) pensions board chair, Glyn Bradley, said "now was the time" to review the workplace and state pension frameworks, including for the self-employed, and more importantly to make some decisions on how to help UK pension savers achieve a comfortable retirement.

"This might not mean immediate change, but putting a roadmap in place for the future will help individuals and their employers to plan," he continued.

Bradley advocated for the introduction of guided retirement products, including options like 'retirement only' collective defined contribution (DC) schemes.

He also highlighted pensions advice and guidance as an area that required "immediate attention."

"Whether through encouraging better usage of government services like 'PensionWise' or through allowing those who can pay for advice from their pension pot, more access to advice will help UK savers plan their retirement," he added.

Other industry experts, such as Aegon, have encouraged the government to build a consensus on what an adequate retirement is, and to carry out a detailed analysis on how much people need to save to achieve this.

It also urged the government to implement the long-awaited 2017 auto-enrolment review recommendations, as well as expand the upper age limit to 75 to reflect the fact that people now have longer working lives.

Meanwhile, the FCA recently announced a consultation on proposed 'targeted support' for pensions and investments, which Rathbones director of propositions, Ella Hugh, said represented "genuine progress" for UK investors, paving the way for people to be able to access financial guidance that many urgently need.

"Targeted support can democratise investment guidance, but for more complex wealth planning, more comprehensive advice within the context of an ongoing relationship will always deliver the best for individual clients," she added.

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