What if we put payroll in charge of pensions?here’s ten things that you could change!

Henry TapperPension PlayPen

2016 Payroll conference

Welcome.Before the session starts:• Think about the one thing that you think

needs to change in order to secure pensions as the key long term savings vehicle in the UK

• Jot it down• See where it comes in our countdown• Discuss at end if not in out list

The future of pensions – ten things that need to change!

Transparency

10

1. Transparency: we must know what we’re paying for our pension

“I think one of the things that saps people’s enthusiasm for saving in investment products is just a sense that they do not understand the fees and charges”.

David Cameron; PQT April 2016

Grey and Kelly v FCA (June 2016)

Value for money

109

2. Value for money: we need to know what and how to measure

Source; Clarius

Visibility

1098

3. Visibility: we should see what we have

Picture ; Moneyhub

Helpful administration

10987

4. Helpful administration: For auto-enrolment to workWorkplace Pensions have to work

Source ; Pension Playpen

Portability

109876

5. Portability: the pot should follow the member

Durability

1098765

6. Durability – our pensions should be safe

Safe robo-advice

10987654

7.Advice : are we ready for the robots?

Source ; Deloittes

Fair tax relief

109876543

Lies, damn lies and tax reliefs

Tax relief £24bn?

Investment relief £8bn?

Tax free lump sum

£3bn?

NI relief inc salary

sacrifice£15bn?

Most of it goes on already well off

With auto enrolment – why do we need tax

incentives?6 in 7 higher rate

taxpayers are basic rate in retirement

For public sector schemes – savings

go to Government??

New tapered AA and reduced LTA

will rebalance

Sort it out and then

leave it alone

Sustainable investment

1098765432

9. Stewardship: pension investment will have a social purpose

Source; Legal and General

Minimal government tinkering

10987654321

10. Less change; why trust must be restored

Ten things that need to change – Was yours on our list?

Transparency - we must know what we’re getting

VFM - we need to be able to measure it

Visibility – we must see what we’ve got

Helpful admin – making workplace pensions work

Portability - the pot should follow the member

Durability – our pensions should be safe!

Advice we trust – are we ready for the robots?

Fair tax relief - are we getting our ROI?

Sustainability - pension investment will get better stewardship

Less change - confidence has to be restored