Hitting The Target: A Vision for Retirement Income

Hitting The Target: A Vision for Retirement Income Adequacy

Download the report below, and a two page summary of the final recommendations.


Find out more about the Hitting the Target project here.


'Hitting the Target: A Vision For Retirement Adequacy' builds on the feedback that the PLSA received from consultation respondents and roundtable participants. It outlines the PLSA’s final policy recommendations in several areas, including:

  • Introducing Retirement Income Targets: A package of measures is needed to improve savers’ engagement in pensions, including the development and adoption of Retirement Income Targets. The PLSA has commissioned an independent research institute to develop such targets, which will be released in early 2019. We will work with Government and lifetime savings industry to roll out the targets.
  • Increasing Pension Savings: The Government should raise the minimum contribution levels for automatic enrolment from 8% of band earnings to 12% of total salary between 2025 and 2030 and rebalance employer/employee contributions so that they 50% each. This will ensure that pension saving remains affordable for savers.
  • Improving Pension Scheme Governance: The pensions sector should continue to improve the quality of trustees. IGCs should have their remit extended to cover savers throughout the retirement saving journey. The industry should also develop a set of metrics to help trustees to assess whether a scheme offers good value for money.
  • Increasing ‘At Retirement’ Support: Pension schemes should signpost savers to appropriate product options at retirement to ensure that those who have difficulty making an active decisions are still able to access good value products.
  • Other Retirement Income Sources: It should be easier for people to supplement their retirement savings with income from other sources, such as housing wealth, and to work for longer if they need or want to. The Single Financial Guidance Body’s guidance sessions should both cover property assets and how income from earnings can be used to supplement pension income.