Tomorrow's Investor

Pension Initiative Survey

The RSA's Tomorrow's Investor project has created a survey focusing on cost, accountability and trustworthiness within the current pension market. We want to know about your experiences of pension fund providers and would be very grateful if you could spare the time to complete it.

Take the survey: Tomorrow's Investor Pension Initiative Survey

Share ownership for the 21st century

Paper: Producing decent returns for pensioners in turbulent times

A newly published 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.

Idea in Brief

  • The dismal performance of the UK fund management industry is one of the main reasons why the outlook for pensions and pensioners is distinctly cloudy.
  • The underlying cause of the problem includes seeking to avoid risk, compounded by the way investment funds are allocated to different classes of assets and ineffective regulation of Britain’s major financial institutions
  • This has created a gap between the ultimate owners of UK public companies and their managements, and perverse incentives for those managing other people’s money.
  • The recent financial turmoil has made it more critical that all the institutions concerned abandon their conspiracy of silence and denial, and put themselves in the shoes of their ultimate client: People saving for their retirement.


Solution: World class asset management, Global asset allocation, Smart Indexation, Bridge the ownership gap, and Positive incentives for fund managers.

Download the full paper: Producing decent returns for pensioners in turbulent times (PDF, 229KB)

Tomorrow's Investor report

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?

The report closes by announcing the RSA’s intention to create a business plan for a new type of pension fund: one that is both low cost and high accountability. In the face of financial meltdown and a looming pensions crisis, this is the kind of innovation the financial services industry needs

Download the full Tomorrow's Investor report (PDF, 478KB)

Expert papers

The RSA commissioned four expert papers to support its research, from:

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.

Download the Tomorrow's Investor interim report (PDF, 215KB)

Project briefing and background