The future of the pensions industry: Pensions UK’s strategic policy priorities

Pensions policy can change rapidly, bringing new requirements and expectations for schemes – something that we support our members with every day through our expert guidance and lobbying.

But we don’t just respond to policy, we set the agenda.

We look ahead to how the pensions sector can be secured and strengthened now and for the years to come in the face of economic, demographic and policy shifts. So, while we address current issues with our signature speed and precision, we are also thinking longer term, guided by our three strategic policy priorities:

• Closing the gaps: towards a fairer retirement
• Powering progress: pensions for UK growth
• Securing the system.

Our strategic policy priorities set the tone for our work in 2026 and beyond as we develop actionable positions and policy solutions for the future of the pensions sector that will benefit our members and the broader industry. Below, we set out why we have chosen them and how they tie into the current major talking points in pensions.  

Closing the gaps: towards a fairer retirement

With savers facing challenges in income security in retirement, we are working to close gaps in pension adequacy, outcomes and fairness in a way that is sustainable for the long term.

The recently launched Pensions Commission has the potential to have an enduring and transformative impact on pensions adequacy, and we are engaging closely to make sure the views of our members are heard – Commissioners Baroness Drake and Professor Nick Pearce were at our Annual Conference 2025 and Pensions UK, along with the ABI, is chairing the Commission’s industry liaison group.

To support the work of the Commission and position ourselves, we are:

• Working with independent researchers and members to explore whether automatic enrolment contributions should introduce new flexibilities to better accommodate the needs of savers with low incomes
• Examining the wider contributions system, including considering:
  • What changes could make the system fairer for all income groups
  • The role of the State Pension
  • The role of employers, and benefits in helping to ensure pensions adequacy for all savers.

Powering progress: pensions for UK growth

We are leading the conversation on how pension funds can invest to support UK growth by contributing constructively to the national debate, ensuring it is aligned with fiduciary duty and supporting effective engagement between industry and policymakers to help unlock more domestic investment in a sustainable, saver-focused way.

In 2024, Pensions UK published Creating a Pipeline of Investable Opportunities, setting out clearly how different types of pension schemes must be approached in different ways if they are to be supported to invest more domestically, We were clear that the Government should focus on improving the quality, structure and accessibility of UK investment opportunities and the report was designed to highlight viable investment sectors for pension schemes.

As the debate has intensified, the Mansion House Accord represented a vital voluntary commitment by the industry, that supports our position that industry led initiatives are a much better solution than mandation. As attention now turns from intent to implementation, we are developing new practical support to help schemes navigate the evolving UK investment landscape and, where appropriate, how they can increase UK investment in line with the Accord.

This work will focus on delivery: examining the role of public finance institutions such as the National Wealth Fund and the British Business Bank, showcasing success stories from within our membership, and assessing the progress Government has made since our original recommendations. Our aim is to equip schemes with practical support while continuing to hold Government to account for creating the conditions needed to turn commitment into investable reality.  

Securing the system

We are working with policymakers to build a resilient pensions system for the years ahead, where policy changes are delivered in a way that protects the long-term stability of the system, that functions within a proportionate regulatory framework that works for savers and industry alike, and is ready for the changes that new technology like AI will bring.

The recent publication of Artificial intelligence for UK pension schemes Made Simple marked our first report into the impacts of this revolutionary technology, and we’re continuing to investigate its implications for pensions adequacy and cyber security.

While AI will reshape how the industry works, consolidation is bringing structural change. Although naturally occurring, the introduction of Value for Money, Scale Tests and other regulations are accelerating it. Pensions UK recognises the benefits of greater scale, but we believe that it will not by itself address government concerns such as greater investment in private markets.

In light of this, Pensions UK has undertaken work to evaluate how the continued trend towards consolidation is likely to impact the industry, especially among the LGPS where there is even further pressure from the Government to form pools. DC consolidation and DB endgame are also crucial policy areas of focus.  

Priorities for building a better pensions system

So what do these priorities mean for our members? Ultimately, they ensure that our work over the next few years is focused on the main challenges facing our members and their savers.

By anticipating emerging challenges, convening industry and policymakers, and grounding our work in robust evidence, we will help members navigate uncertainty, influence the policy environment, and make confident decisions in the best interests of savers.

To find out more about our strategic work programme, get in touch with Matthew Blakstad, George Dollner or Olivia Sizeland.