Pensions for Purpose has announced Independent Governance Group (IGG) as a new community partner, marking the group's first partnership with a professional trustee firm.

The partnership aims to further IGG’s commitment to address the challenges the pensions industry faces through systemic risks such as climate change, biodiversity loss and income inequality.

It also builds on work carried out earlier this year between Pensions for Purpose and IGG where both parties joined forces to collaborate on the inadequacy of pension savings for people who retire without owning a home.

The initiative focused on the "impending crisis" facing the first generations to retire with only their DC pension pots, as both Pensions for Purpose and IGG raised concerns around the increasing number of people with mortgage terms extending beyond retirement age, necessitating continued payments from their pensions.

In addition to this, the duo warned that the inadequacies of the benefits system means those needing to claim housing benefit or disability support at retirement will not fully recoup the savings made through their pensions.

Given this, the pair argued that while reforms to increase auto-enrolment contributions will benefit future pension savers, the challenges faced by those over 45 today require "urgent and comprehensive policy changes".

Furthermore, as a community partner of Pensions for Purpose, IGG has committed to advocating for a long-term pensions commission to examine the intersection of pensions, benefits and housing.

In the meantime, however, IGG argued that it is "essential" to start engaging with people about their future housing plans in retirement, helping them to make informed decisions that will impact their financial security.

Commenting on the partnership, Pensions for Purpose CEO, Charlotte O’Leary, said: “We are delighted IGG is joining us as a Community Partner.

"With their tremendous reach as professional trustee to a large number of UK pension schemes, IGG is influential in helping schemes navigate the challenges of climate change, biodiversity loss and the inadequacy of defined contribution (DC) pension provision.”

Adding to this, IGG head of sustainability and trustee director, Tegs Harding, said: “Ensuring pension funds are managed with a sharp focus on sustainability is a key value and focus area for us. This closely aligns with Pensions for Purpose’s core mission of empowering industry stakeholders to value people and planet alongside profit.

“Through our partnership, we will be able to support and promote the purpose-driven work undertaken by this organisation, providing trustees and stakeholders with the tools and knowledge they need to make informed, decisions that positively impact both beneficiaries and the broader community.

“We look forward to taking on the role of an active partner, helping to transform the pensions and investment landscape for the better.”

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