Nine in 10 (90 per cent) pension professionals believe that the pensions industry is innovative, a survey by PricewaterhouseCoopers (PwC) has revealed.

The survey, which was conducted at the PwC Pensions Conference 2022, found that 27 per cent of respondents thought that the sector was always innovative, while 63 per cent believed it was ‘sometimes’ innovative.

PwC also asked respondents whether they considered their pension scheme to be innovative, to which 10 per cent of respondents replied ‘yes’, 50 per cent replied ‘sometimes’, and 40 per cent replied ‘no’.

A third (33 per cent) of those surveyed believed they themselves were always an innovator, while 60 per cent said they were sometimes an innovator and 7 per cent did not see themselves an innovator.

The survey also examined which areas of the industry they believed were the most in need of innovation in the future, and found that end-game options were identified most often.

Almost half (48 per cent) of respondents believed that end-game options were the issue that most requires industry innovation, ahead of interest rates and inflation (identified by 29 per cent of respondents), covenant (14 per cent), administration capacity (10 per cent), and longevity (0 per cent).

With end-game options identified as the area most in need of innovation, the survey also asked when respondents thought that their sponsor or scheme will be considering alternative options to buyout.

The amount of time that was most commonly identified was between zero and three years, mentioned by 57 per cent of respondents, ahead of more than five years (24 per cent), between three and five years (14 per cent), and those who replied ‘don’t know’ (5 per cent).

In light of increased activity in the de-risking market, 90 per cent said this rise in demand was driving innovation, while 10 per cent stated it was too early to tell.

PwC pensions partner, Stephen Soper, commented: “Innovation was the theme for the PwC Pensions Conference 2022 because we believe now is the time for schemes to think innovatively to capitalise on the opportunities available when planning the future of the scheme.

“Our survey highlighted how much potential for innovation there is within the pensions industry. More than 90 per cent of respondents saw both themselves as innovative and the pensions industry itself as innovative.

“However only 60 per cent considered their schemes to be innovative which may suggest that when trustee boards come together, being innovative is more of a challenge. More prudent group mentality could be hindering the innovative thinking process.”

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