After a busy start to the year, the past week has been a chance for many in the industry to reflect on recent industry announcements and market challenges, as well as consider the key areas that still needs closer attention.

Speculation ahead of the March Budget, for instance, has already begun, as industry experts share their own wish lists, and ponder the areas that the government is most likely to make changes in.

One area of focus that has received repeated calls for change is the Money Purchase Annual Allowance, with analysis from Just Group revealing that the MPAA is worth £8,480 less in real terms than when it first came into force in 2015.

However, other suggestions, such as capping tax-free pension cash or increasing the normal minimum pension age have received a more mixed response, as industry experts warned against a “knee-jerk” reaction to the recent rise in economic inactivity.

More broadly, industry organisations have also continued to reflect on the government’s recent package of measures around defined contribution (DC) savings, with some calling on the government to 'go further' in its plans for value for money.

DC considerations have also been a key theme more broadly, as research from Redington prompted calls for the pensions industry to work together to address the complexities being faced by DC savers nearing and in retirement.

Policy change could be needed alongside these industry efforts though, as research published today (24 February) by the Institute for Fiscal Studies suggested that significant life events, including large pay rises, generally have little impact on private sector employees’ pension participation and contribution rates, despite being associated with large changes in spending commitments.

Concerns around pension saving levels have also been heightened amid the cost-of-living crisis, with industry organisations suggesting that it would "not be unreasonable" to suggest that the economic situation in the UK has been playing into whether and when some consumers are accessing their pensions, after analysis revealed a 42 per cent increase in small pension pot transfers.

However, research from Aegon revealed that the recent market volatility and uncertainty has also prompted an increased demand for retirement advice, with advisers estimating that over half (58 per cent) of the assets they advise on are for clients receiving retirement advice, up from 55 per cent in 2021.

Broader efforts to protect savers have also remained a focus, with the Financial Conduct Authority lunching the latest update in its ScamSmart campaign, as well as taking regulatory action against firms making misleading redress offers to former British Steel Pension Scheme members.

The Pensions Regulator, meanwhile, has upped its focus on environmental, social and governance (ESG) and climate change considerations, announcing plans for a new ESG non-compliance regulatory initiative.

Broader industry updates have also been seen, as the PMI introduced its new membership structure, whilst the Government Actuary's Department has extended its calculator for public sector workers following the McCloud ruling.


Despite an already busy start to the year, it seems unlikely that the industry will have time for a vacation anytime soon, with the spring Budget, various parliamentary hearings, the closure of a number of government consultations, and of course the Pensions Age Awards 2023, already on the horizon.

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