The Society of Pension Professionals (SPP) has set out six recommendations for the future of the UK pensions system, arguing that policymakers should build on the success of automatic enrolment as they consider the next phase of reform ahead of an expected Pensions Bill in 2027.

In a new report, What's Next for UK Pensions?, the SPP called for action across six areas including establishing a framework for retirement income; helping savers convert pension pots into sustainable retirement income; improving pension adequacy; delivering better value through consolidation; unlocking the potential of defined benefit (DB) schemes; and improving guidance and technology for savers.

Among its proposals, the SPP called for the extension of automatic enrolment to workers aged 18 and over and the removal of the lower earnings threshold so contributions are calculated from the first pound earned.

It also urged the government to develop a formal definition of pension adequacy and set out a long-term timetable for increasing minimum workplace pension contributions to 12 per cent of eligible earnings, split equally between employers and employees.

The report highlighted the potential role of collective defined contribution (CDC) pensions, stronger support for members approaching retirement, opportunities to evolve the Pension Protection Fund (PPF) and reforms to help modernise the DB landscape.

The SPP said its recommendations had been designed to be delivered over the short, medium and long term, stressing that lasting reform would require collaboration, political consensus and a stable regulatory framework.

SPP What’s Next for UK Pensions? Working Group chair, Shayala McRae, said: “The UK has a strong pensions foundation to build on, and now is the time to shape what comes next."

She said that automatic enrolment had transformed workplace pension saving, but now we need to “build on that achievement”.

McRae added the report offers a “constructive, long-term vision for the future of UK pensions,” with practical recommendations that government, regulators, employers and the industry can work together to deliver.

“With the next phase of pension reform approaching, there is a real opportunity to build a system that serves savers and future generations even better," she concluded.

---