The relaunched Pensions Commission must be prepared to confront “sacred cows” such as the triple lock and compulsory savings if it is to deliver meaningful reform, Association of Consulting Actuaries (ACA) chair, Stewart Hastie, has warned.

Speaking at the ACA’s annual dinner on 2 October, Hastie highlighted that the second Pensions Commission, revivedby the government earlier this year, had just 18 months to report, compared with three years for Lord Turner’s original review, which he said was “indicative” of how overdue action is.

“At the risk of being accused of living in political ‘La-La-Land’, surely it is inevitable that these reviews will come up with what we already know," he continued.

"That is, as a society, we need to save more, and we need to work productively for longer,

“My hope is that despite the limitations given to the reviewers, they will look at some of these sacred cows,” added Hastie.

Among the issues he highlighted were the long-term affordability of the state pension triple lock, the case for a minimum level of compulsory private savings, and a significant rise in state pension age combined with redistribution to those most in need, particularly those struggling to secure housing.

His warning echoed PensionBee's call for the commission to deliver "bold reforms", as it said that millions risk being "condemned to retirement poverty" unless the UK’s pensions system is overhauled.

Hastie also called for more vigorous policies to incentivise savings in growth assets, greater financial education for young people, and stronger employment and productivity policies for older workers.

He pointed to the ACA’s 75th anniversary next year as an opportunity to push financial education further up the agenda.

The ACA chair went on to stress the value of industry collaboration, pointing to successful joint work with SPP and APL on legislative amendments following the Virgin Media appeal court decision.

He also welcomed other measures in the “bumper” Pension Schemes Bill, including a superfund regime, defined contribution (DC) reforms, and flexibility around defined benefit (DB) surplus releases, which he said could help businesses invest while improving outcomes for members, as well as reaffirming the ACA’s support for collective DC (CDC) arrangements.

“Whether in decumulation or whole of life, these arrangements really do have the opportunity to provide higher retirement incomes, whilst also helping to generate long-term investment and growth in the economy,” Hastie said.

Looking ahead to the Autumn Budget, he urged the government to avoid further tax changes to pensions.

“We are deeply concerned over the cycle of persistent and damaging rumours of further tax changes in pensions,” Hastie warned.

“Tax changes that we all know could be a massive step back in pension saving. We continue to urge the government to bring a cool, calm head to pensions tax that provides stability and certainty to support positive long-term saving behaviours.”

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