The silent shift in Pensions

It’s been a quieter month than usual in pensions. Yet for an industry on the brink of major structural reform, the silence from policymakers is beginning to feel more unsettling than reassuring. 

Global markets have been shocked by President Trump’s renewed tariff agenda, fuelling fears of a global trade war and putting further strain on investments, raising fears of recession. Meanwhile, the UK Spring Statement came and went with no mention of pensions, despite growing calls around long-term savings and retirement adequacy.  

Behind the scenes, however, significant change is looming. Pensions Minister Torsten Bell has confirmed a Pensions Bill will land before the summer recess, likely centred on the final Pensions Investment Review and key proposals from the King’s Speech. Bell referenced the commitment to implement legislation for a permanent regime for DB superfunds, as well as rules around surplus extraction raising more questions than answers. While the idea of allowing well-funded schemes to release surplus back to businesses or members may sound appealing, the governance implications are serious. More detail on how surpluses may be used, will be set out in the Government’s response to the Options for DB schemes consultation, which is expected this spring (basically anytime from now until before the summer). 

Interestingly, recent PLSA findings highlights the emerging debate around surpluses. More than half of employers reportedly want to explore surplus extraction; yet 73% of trustees believe this should always be at their discretion. While potentially unlocking value for businesses and members, this also raises fundamental questions about control, fairness, and governance. 

There are glimmers of progress, the long-awaited pensions dashboards are finally moving, with three providers completing full connectivity. But this still feels like a slow-moving beast., with many won’t benefit from dashboards until 2026 at the earliest. 

Even in the investment space, where there’s growing pressure to channel capital into “productive finance,” the numbers tell a slightly different story. While larger DC and DB schemes are increasing allocations to infrastructure and renewables, the smaller end of the market still struggles to grasp what they’re even invested in, raising concerns over governance standards. 

From a communications perspective, the direction of travel for pensions policy is clear, but the path is still being drawn, and the organisations that take a considered and measured strategic communications approach now will be best placed to influence outcomes in the future. 

Trustees, in particular, should take this opportunity to review governance processes, and engage early with policymakers and advisers on the impacts of such changes to pension savers. Whether it’s the evolving use of surpluses, the slow-but-steady rollout of pensions dashboards, or the increasing focus on productive finance, members need to understand what these shifts really mean for them. 

So, we wait….and wait… for reforms that could reshape the system. For a Bill that may change how pensions are funded, managed, and returned. With all the changes looming, and given the level of uncertainty, pensioners need to stay calm and continue as is. Although it’s not easy, it requires the investment and pensions industry to provide reassurance and make savers and pensioners feel confident about the future. 

Total mentions by topic (February – March)

• Pensions funding and deficit saw the greatest number of mentions between February and March with 437 stories, followed by State Pensions with 259 stories.

  

Examples of Pensions funding and deficit mentions this month 

• @JoesphineCumbo -The 'pension funds' are private retirement savings of thousands of workers. Trustees of these funds have a duty to invest in their best interests. Retirements are put at risk if pension money is diverted to meet political objectives. 
   
• @johnclancy - @ChildrensCommThese Children’s Services cuts taking place when Council has *chosen* to increase expenses to its Pension Fund Investment Managers to £34M this year & will *increase* them to £35.5M 2025-26. Speak to @AngelaRayner & @bphillipsonMP update: https://john-clancy.com
   
• @TPRgovuk - The MGN Pension Scheme will be fully funded by January 2028, with an additional £25.5 million five-year injection from publisher Reach Plc https://ow.ly/t9l950VftkX