On a visit to a girl’s secondary school recently, I found myself touring state-of-the-art science labs and speaking to students about their career dreams, while also attempting to remind them of the importance of pension saving (as Minister for Pensions, this comes with the territory).

One thought has stayed with me since then: while these young people are preparing to start their careers, it is our responsibility to make sure they aren’t stuck with the pension inequalities of the past when they come to enter the world of work.

Since coming into office in October last year, I’ve being sketching the outline for where I see the future of UK pensions heading.

I want to make sure pension saving outcomes are adequate and predictable, that pensions are fair and working hard for savers, and that we start to bridge the generational gap for those who are paying into a defined contribution (DC) scheme with those who pay into a defined benefit (DB) scheme. To do this my plan is to reform and future proof the DC market.

I started this in January with a package of changes that included the value for money framework, where: schemes will need to disclose their investment performance, costs and charges via clear and comparable metrics to the benefit of savers; reforms to the charge cap, giving schemes more flexibility to invest in “illiquid assets” such as start-up companies, renewables and infrastructure; feedback on workable solutions to tackle the issue of small pots; and an extension of collective defined contribution (CDC) schemes, most significantly to include multi-employer models.

We are all no doubt aware that being in an underperforming pension scheme can lead to someone missing out on thousands of pounds in retirement.

The Value for Money framework and these additional measures were the first step towards improving security and creating better returns for savers, so they can enjoy the retirement they’ve worked so hard for.

But what comes next?

I’ve said it before and it is something the industry is well aware of, but since 2012, automatic enrolment (AE) has transformed the pensions landscape in the UK for the better, but we know there’s more to be done to ensure a fairer future for savers.

This is why the Private Member’s Bill on the extension to AE currently going through parliament is so vital.

Not only will this benefit over three million workers and bring half a million 18 to 21-year-olds into saving for the very first time, but it will also bring in many more women and other groups who have historically found it harder to save for retirement.

I’ve also committed to measuring the gender pensions gap, with a new official measure announced this month. The measure shows the gap in pension savings between the average British man and woman is 35 percent.

This measure – to be published yearly going forward – will help shine a light on the issue of the gender pensions gap, allow us to track progress, and, most importantly of all, encourage efforts to reduce it.

And there is more to come this summer, with a forthcoming package of measures set to build on what we have achieved so far, and truly work to future-proof our pensions. Because there is lots to do to make sure we shift to focus from cost to returns, we know the difference a few percentage points will make to the amount in someone’s pension pot, so that is what I’m focused on.

I look forward to continuing to collaborate with industry and stakeholders to boost returns for pension savers and ensure people across the country are able to enjoy the retirements they’ve worked so hard for.

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