Incoming Association of Consulting Actuaries (ACA) chair, Steven Taylor, has highlighted the key objectives for the ACA over the next two years following his election as chair.

Taylor emphasised the ACA’s goal to deliver an intergenerationally coherent savings environment to balance responsible stewardship of defined benefit schemes with promoting joined up policies that will help future generations save adequately for their retirements.

To achieve this goal, Taylor outlined four components that were “vital” to its success: adequate savings, stewardship of DB schemes, tackling climate risk through the way savings are invested, and products and innovation.

The importance of saving adequately was highlighted in research by ACA and others, which has shown that younger employees in today’s predominately defined contribution (DC) schemes are not saving enough for their retirement, with other savings needs, such as saving for a home, risking crowding out voluntary pension provision.

Discussing DB scheme stewardship, Taylor commented: “The UK’s around 5,000 DB schemes have generally emerged strongly from the pandemic.

“However, as we hope to soon see long awaited new funding regulations and guidance, securing a smooth transition of DB schemes to their endgames has never been more important.

“We look forward to working closely with The Pensions Regulator to help ensure that a new funding code is put in place that delivers for all stakeholders – providing strong reassurance to members and trustees, but also clarity to sponsors on the cost of their pensions promises.”

The ACA also said that the past few years have seen a step change in the approach of the pensions and investment community to addressing climate change and risk.

On products and innovation, the ACA noted that meeting these challenges will require actuaries to lead the way in the development of products and services needed by savers, which could range all the way from facilitating pension dashboards to the emergence of innovative new collective DC schemes that can generate an income from DC savings.

Taylor will take over from Patrick Bloomfield as chair on 1 June 2022.

Commenting on his appointment, Taylor said: “I’m honoured to have been elected by my fellow actuaries as chair of the association.

“I believe actuaries are equipped to make a huge difference to some of the biggest challenges we face as a society: helping the next generation build up adequate savings for their retirement, responsibly stewarding defined benefit schemes through a new economic and regulatory landscape and understanding the longer-term impacts of the pandemic on life expectancies.

“I’m looking forward to working closely with our industry to contribute the views of actuaries to emerging UK policy.”

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