Industry experts have stressed that whilst progress has been made to improve diversity, equity and inclusion (DEI) within the pensions sector, there is much more still to be done, as Pensions Age launches its special focus shining a spotlight on DEI issues.

DEI is an area of growing importance for those running pension schemes, as the benefits it can provide, both from an operational perspective and by way of improving customer service, is becoming more recognised.

"Within pensions, we need to think about DEI in relation to the end user – the saver – as well as in relation to those working within the industry," Pensions and Lifetime Savings Association director of policy and advocacy, Zoe Alexander, said.

"In terms of savers, there is a lot more work to do to ensure we are helping those with protected characteristics, both in terms of the policy framework and in the experiences we provide to savers when they engage with their pension scheme.

"And it is essential that the pensions industry is comprised of people who reflect the diversity of savers, leading to better governance and decision making, and ultimately, stronger outcomes for members,” she adds.

But there is still so much more to be done for DEI to be comprehensively implemented throughout the pensions sector.

Given this, Pensions Age will be looking to explore DEI as its year-long special in 2025, with the first article in this series, from Pensions Age editor, Laura Blows, taking a closer look at the current pensions landscape, and the key challenges surrounding DEI efforts.

The article noted that progress is being made, citing data from The Pensions Regulator, which found that there was industry recognition of the importance of inclusive and diverse boards, with 78 per cent of respondents saying they felt a diverse trustee board was important.

There was also broad consensus that diverse and inclusive pension boards are important for good decision-making (84 per cent), good governance (83 per cent) and good member outcomes (85 per cent).

However, TPR’s trustee research found that pension scheme boards are lacking diversity despite a desire to improve, with the ‘typical trustee’ still being a white man who is over 45. It found that just 24 per cent of trustees are women, compared with 52 per cent of the wider population.

Meanwhile, 9 per cent of trustees were under the age of 45, compared to 44 per cent of the wider population. The survey also found that 7 per cent of trustees had a disability, compared to 20 per cent of the wider population, and 3 per cent said they were neurodivergent, compared to an estimated 15 per cent nationally.

Therefore, “it’s fair to say the pensions sector has some catching up to do,” Material Impact research manager, Bruna Bauer, said.

And whilst DEI activity looks set to increase across the sector, this may be a gradual process, as WTW pensions governance specialist, Abigail Currie, said she expects the spread of DEI across the sector to be one of “evolution rather than revolution”.

In a similar vein, Sackers partner, Eleanor Daplyn, said that she expects broader industry changes to help facilitate the take up of DEI, giving the example of ‘consolidation’ being one of the big trends in the pensions industry, particularly in the DC arena.

“As schemes consolidate, the makeup of their membership becomes more diverse," she explains.

"Trustees of these schemes are having to think more about how best to communicate with such a wide-ranging membership. We have already seen improvements in member communications in these schemes… and we can see this continuing in the coming year."

Call it what you like, but DEI is clearly here to stay, and the team at Pensions Age look forward to highlighting the benefits it can provide, as well as assisting its growth across the industry by spreading awareness with our special year-long focus for 2025

Read the first article in our year-long special focus here.

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