TISA Responds to the 2024 King’s Speech
Renny Biggins, Head of Retirement at TISA said: “51% of adults have low engagement with their pensions and 29% are not even aware how their assets are invested. TISA therefore welcomes the first steps taken towards pensions reforms in the King’s Speech today including continuing the work on small pots, value for money and decumulation. However, if we are to create a pensions and savings framework that works for everyone across the regions and nations of the UK then a more holistic long-term review is needed. The Government should also implement the mid 2020s proposals for Auto Enrolment as soon as possible to reflect the importance that this framework plays in helping millions of employees build a retirement savings pot.
The constant changes we have we experienced in the pensions sector in recent years is perceived negatively by consumers and creates barriers to achieving a key objective of increasing engagement. As such, TISA continues to champion the creation of a Long-Term Savings & Investments Commission to achieve long-term, consistent and holistic policy stability, which in turn will increase understanding, engagement and trust for consumers. These are central to driving up levels of general financial resilience and retirement outcomes.
“From LISAs to stocks and shares ISAs and their pension, people use a variety of different savings instruments to prepare for retirement, so looking at this issue holistically is imperative to bolstering economic growth and restoring confidence for the future.”
Lisa Laybourn, Policy Director at TISA said: “The King’s Speech contained many welcome proposals, not least the pledge to create a smart data bill which will enable a framework for people to have increased visibility and take greater control over their financial lives.
“Despite this, we still need to see more attention paid to financial education. Making people aware of the savings options available to them from a young age is a win-win proposal: from tax-free ISAs and savings plans all the way through to planning for retirement.
“We look forward to providing our support, and discussing how our proposals align with the new Government’s priorities and missions.”