PLSA chair sets out vision for trust in pensions

Richard Butcher, chair of the Pensions and Lifetime Savings Association (PLSA) has used his introductory speech at the recent PLSA Investment Conference to highlight the importance of growing trust within the pensions sector.

Butcher told delegates at the conference in Edinburgh that political and economic uncertainty has created an opportunity for the pension and savings industry to enhance its relationship with individual savers and pension fund members. He said: “In a survey we did last year, fewer than one third of non-retired respondents with a pension told us they trust the financial services industry – and that fell to little over 20% amongst baby boomers. Well, people may not trust the financial services industry as a whole, but 64% trust their pension scheme to invest their money.”

Butcher said that there is now a trust deficit between savers and pension funds, with 55% of savers worried about news stories concerning corporate failures and employees losing their pensions. In order the improve the trust between savers and institutions safeguarding their assets, Butcher said that the PLSA will implement a number of initiatives. These include Retirement Income Targets, or the development of income thresholds for minimum, modest and comfortable standards of living, and the newly formed Cost Transparency Initiative, which will bring cost transparency templates to standardise cost and charges information for institutional investors.

The PLSA investment conference also coincided with International Women’s Day on March 8th and the PLSA showed its commitment to gender diversity by signing up to the Women in Finance charter in November 2018, pointing out that 48% of the speakers at this year’s conference are women.