This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
Welcome to Reed Smith's viewpoints — timely commentary from our lawyers on topics relevant to your business and wider industry. Browse to see the latest news and subscribe to receive updates on topics that matter to you, directly to your mailbox.
| less than a minute read

Is pension saving going to become more user-friendly?

It's a very complex process trying to decide how much to save into your pension and the decision-making process involves considering things like inflation risk, investment returns as well as your liquidity and longevity needs.

These are some of the big questions considered by trustees of defined benefit schemes who are often supported by sophisticated advisors that can help set the parameters of these assumptions. 

Individual pension savers often don't have any specialist knowledge or input to help with making these important financial decisions. Perhaps the introduction of collective defined contribution schemes (also known as collective money purchase schemes) will help pension savings become easier to navigate for individuals as investment decisions can be left to those with specialist skills. Perhaps pension saving should even be a topic on the school curriculum?

For most twenty-somethings, paying into a pension is the last thing on their minds. Managing money successfully means learning to balance today’s financial demands with putting enough aside to meet our future needs – and this is far harder for young people.