Tomorrow's Investor
Building the consensus for a People’s Pension in Britain
In its report Building the consensus for a People’s Pension in Britain, the RSA discovered that:
- A huge proportion of our pensions disappear in fees – with charges swallowing up to 40 percent of the value of the pension.
- If a typical Dutch and a typical British person save the same amount for their pension, the Dutch person can expect a 50 percent higher income in retirement.
- That minor changes to our regulatory framework could boost pension returns by 39 percent.
Following two years of research, 'Building the consensus for a People’s Pension in Britain' describes what a "best practice" pension system would look like. It calls on the coalition government to build a broad cross party consensus in which political parties, employers, unions, and pension funds agree to implement a ‘pensions architecture’ that brings the UK in line with countries such as Holland and Denmark that enjoy the lowest levels of pensioner poverty in Europe.
Download 'Building the consensus for a People’s Pension in Britain' report (PDF, 330KB)
Watch again: Building the consensus for a People’s Pension in Britain report launch (6th December 2010)
Pensions for the people: addressing the savings and investment crisis in Britain
In this report, 'Pensions for the people: addressing the investment crisis in Britain', the RSA concludes that although the Government’s policy of auto-enrolment and personal accounts represents a big opportunity for UK savers, the scheme must be extended to cover pension payments above £3,600 if it’s going to have a major impact. By limiting pension payments to £3,600 many savers across the UK will be forced to open private pensions that often charge exorbitant costs (often up to 40 percent of the value of their pension).
Survey findings: Urgent need for accountable, trustworthy and transparent investments
Tomorrow’s investor launched the 'Pension Initiative' survey to establish an understanding of the critical behavioural change being witnessed in the financial industry. It identified current problems as well as high expectations for the future of fund management.
Paper: Producing decent returns for pensioners in turbulent times
A paper by Sir John Banham, 'Producing decent returns for pensioners in turbulent times', blames the poor performance of the UK fund management industry on Britons’ propensity for risk avoidance, ‘little Englander’ attitudes to investment fund allocation, and ineffective regulation for. The paper urges institutions to put themselves in the shoes of their ultimate client: people saving for retirement.
Tomorrow's Investor report and expert papers
The final report of the RSA’s Tomorrow’s Investor project combines the findings of its research with analysis of the pensions industry. The report concerns itself in particular with costs and charges levied on pension plan members. These are the most important element of a pension plan, because they are potentially avoidable. Yet most pension funds charge much more than they should because selling and set-up fees are so high. Fund management costs could also be reduced by more long-term strategies.
The report also looks at methods of improving transparency and accountability and at improving investor engagement. It suggests a new way of reporting costs and charges. And it argues that pension funds should take more advantage of the resources at their disposal by utilising new methods of social engagement. Google uses prediction markets, so why can’t Norwich Union?
Tomorrow’s Investor interim report
Twenty-five ordinary investors took part in the Tomorrow’s Investor deliberative forum in July 2008. They took part in discussions and listened to presentations from experts in the field.
The results show increasing levels of concern about indirect investments, pensions in particular. They also show how disengaged investors are from the management of their own money.
Project briefing and background
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