Social policy changes that are needed to help solve the UK’s pensions drain caused by increased longevity were discussed at the Actuarial Profession’s annual Pensions Conference in Leeds today.

In a plenary session, BESTrustees plc chairman Alan Pickering said better adult education opportunities were needed to enable older workers to remain in employment longer.

He said: “We need to understand that there isn’t a solution to the longevity issue that is driven purely by the pensions industry or pensions policy.”

“We have to provide opportunities for people to work longer by offering access to lifelong learning. The emphasis on education needs to be taken away from universities and more needs to be spent on adult education.”

Mr Pickering said a cultural shift was also needed to encourage older people to remain in work.

He said: “Retirement should not be a default when people reach the age of 65. People should not be pushed out of the workplace when they are in their prime.”

Other areas in which Mr Pickering said policy change was needed to offset increased longevity were:

  • The state pension. Mr Pickering believes a higher state pension is necessary to meet the needs of an ageing population. He said: “Taxpayers are the most efficient provider of a guarantee against absolute poverty in old age”.
  • The future of regulation and defined contribution schemes. He said: “We should retain a system of regulation which is risk based and proportionate. The credit crunch should not result in a knee-jerk reaction that would lead to the over-prescription of defined contribution (DC) pension regulation. Such prescriptive approaches would do as much damage to defined contributions as it has to defined benefit provision. DC must not be stillborn, as it will be the main form of pension provision in the future.”
  • The role of actuaries in future pension provision and the dangers of excessive regulation. He said: “Actuaries will have a vital role to play as we continue to grapple with financial uncertainty. They should resist a system of regulation that makes them simply purveyors of regulation, rather than using their skills and education to provide leadership.”

The conference is at Queens Hotel in Leeds on 3, 4 and 5 May.

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Enquiries: Tel. Fleur Morrison on 020 7632 1453 or email fleur.morrison@actuaries.org.uk

 

Notes to Editors

  1. Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
  2. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyds.
  3. The Profession is governed jointly by the Faculty of Actuaries in Edinburgh and the Institute of Actuaries in London. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.
  4. The Profession is available to provide expert comment to the media on a range of actuarial-related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.