The Pensions and Lifetime Savings Association (PLSA) has rebranded as Pensions UK, also launching an "ambitious" new strategy covering the next decade and beyond.

In its report, 2030 Ready, Pensions UK said that the pensions sector is entering a "defining period" of structural change, being reshaped by consolidation, the focus on investment in growth, and an urgent spotlight on the need for people to save more.

It also suggested that pension scheme consolidation will continue to intensify into the 2030s with fewer, larger schemes and asset pools managing trillions of pounds on behalf of millions of savers.

Indeed, Pensions UK said that, by 2035, it expects master trust assets to grow from £165bn to over £700bn, while Local Government Pension Scheme assets are set to more than double, approaching £1trn, and defined contribution (DC) contract-based assets are expected to rise to around £600bn over the next decade.

In addition to this, although Pensions UK said that it expects the overall size of the defined benefit (DB) sector will continue to decrease, it suggested that open DB schemes will continue to grow.

At the same time, however, savers are set to face growing uncertainty, as Pensions UK suggested that the outlook for savers will be defined by macro-economic shifts with widening inequality, increased longevity, evolving expectations for retirement and more varied working lives on the journey towards taking a retirement income.

Evidencing this, research from Pensions UK found that one in five workers are projected to fall short of even the minimum Retirement Living Standard.

Future housing costs are another area of concern, as the report noted that over 10 per cent of over 65s are expected to be living in private rented accommodation by 2030,
with over 3.8 million retirees worried their money won’t last.

Given these concerns, Pensions UK emphasised that it will continue to do what it can to prepare the industry and the wider pension system for the next decade, and to help everyone achieve a better income in retirement.

In particular, Pensions UK stressed the need "above all" for a pension system that provides an adequate retirement income to savers and is affordable and fair.

The group also argued that savers need to be supported in both work and retirement by a system that is simple and digital-first, and by advice and guidance that is effective and accessible.

In addition to this, Pensions UK said that pension investments should deliver strong risk-adjusted returns and play a positive role in society and the economy.

However, the group stressed that, when it sees red flags, like the risks attached to government mandating investments, it will do all it can to represent the views of members and interests of savers.

Commenting on the report, Pensions UK chief executive, Julian Mund, stated: “To shape the world we want to see in the 2030s, we must respond to change with clarity and purpose.

"Our strategy for 2025 to 2029 will prepare Pensions UK and its members to thrive as we enter the next decade.

"We’ll make pensions better, influence policy, give outstanding value to our members, build a great place to work and secure our future as an authoritative, purpose-led and impactful organisation.

“We have a new name, new logo and new visual identity but, as the most trusted and authoritative voice of pensions, we will continue to do everything we can to help everyone get a better income in retirement.”

Adding to this, Pensions UK board chair, Emma Douglas, said: “The world of pensions is changing fast, and we need to stay ahead as retirement saving plays a defining role for the UK. The sector will require bold thinking and strong leadership.

“Our policy work for the next five years will be based on our understanding of the world we are likely to see in the 2030s, from the experiences of members and retirees to the structure of the pensions market and the direction of public policy.

"We’re drawing on the latest trends, projections and evidence to set out not just what is changing, but what must be done in response.”

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