The National Association of Pension Funds (NAPF) has brought together a group of high-profile experts to examine what a ‘defined ambition’ (DA) pension might look like.
There has been widespread interest in DA since the Pensions Minister Steve Webb proposed it earlier this year. A survey for the NAPF showed that over half of workers (55%) would choose to save into a pension with lower returns if they were guaranteed a minimum income in retirement.
But there are many different definitions of DA. In the collection of essays published by the NAPF at its Annual Conference in Liverpool today (Thu), Steve Webb and other key pensions figures discuss what it is and the type of regulatory framework needed to facilitate its creation.
The NAPF’s collection of essays, called Defining Ambition: Views from the industry on achieving risk sharing, is the first in a series of thought-leadership pieces that the NAPF will publish in the coming months. It includes contributions from Steve Webb; the NAPF Chief Executive Joanne Segars; PPF Chief Executive Alan Rubenstein; Shadow Minister for Pensions Gregg McClymont MP; and Lord Hutton of Furness, among others.
Darren Philp, NAPF’s Policy Director, said:
“The introduction of auto-enrolment and the decline of final salary defined benefit pensions are raising important questions about how we might do pensions differently.
“The defined ambition proposition is a good idea, which has found a strong level of support. But while many welcome the concept of sharing risk to deliver better outcomes for pension savers, there is a lot to do to create an environment where risk sharing schemes can flourish.
“This collection of thought pieces seeks to advance the debate further in this important area. We hope it makes a positive contribution to the Government’s thinking as it develops its proposals for risk-sharing."
Steve Webb, Minister for Pensions, said:
"In this increasingly uncertain world, it is clear that a majority of workers would value greater certainty about the likely level of their pension.
"That is why I am taking a look at all the possible options for delivering greater certainty, and I am pleased that my call for greater risk-sharing has been met with many positive responses. We will publish our ideas for further discussion later this year, as part of our plan to reinvigorate workplace pensions."
Download Defining Ambition
Notes to editors:
1. The survey was carried out by pollster Populus from 14 to 16 September. 979 workers were surveyed.
2. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]