The pensions industry must try and avoid appearing “tone-deaf” to the cost-of-living crisis in its attempts to pressure policymakers to push through the reforms outlined in the 2017 auto-enrolment review, PLSA chair, Emma Douglas, has stated.

Addressing the PLSA Investment Conference 2022, Douglas noted that although the association would continue to push for the changes to be enacted, it must be tactful in the way it goes about it.

“We are campaigning for the government to follow through on its commitments made after the 2017 automatic enrolment review,” she said.

“The fact that there was no mention of auto-enrolment reform in the Queen’s Speech was worrying and shows the need for us to keep up the pressure without appearing tone-deaf to the cost-of-living crisis.

“So, we are asking for an extension of the current auto-enrolment regime to include younger people and pension savings from the first pound of earnings, starting in the mid-2020s.”

Douglas said that, by the end of the decade, the PLSA wanted to see employer contributions to match those of employees at 5 per cent, therefore increasing total pension contributions from 8 per cent to 10 per cent.

“At the early part of the next decade, we want to see 1 per cent extra paid in from both the employer and the employee to bring total contributions to 12 per cent,” she added.

“We do realise this may release this may result in over saving for some, so we also need an opt-down mechanism or other means to address this issue.”

Finally, Douglas revealed that the PLSA was about to begin a research programme to inform a report on improving pensions adequacy, which will be launched at its annual conference in October.

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