A group of industry representatives has called for a citizens’ assembly to support the Pensions Commission and to build trust and consensus around pension reforms. The proposal comes just ahead of the commission releasing its fact-finding report before it embarks on proposals for reform.  

A report by the New Citizen Project – funded by the Standard Life Centre for the Future of Retirement, the Institute and Faculty of Actuaries, Pensions UK, People’s Pension, Nest Pensions, Nest Insight and Johnny Timpson OBE – argues that because individuals increasingly bear responsibility and risk for their retirement outcomes, any new pensions settlement must be shaped by them.   

The report therefore recommends setting up a citizens’ assembly on the future of pensions to support the work of the Pensions Commission and inform decision‑making by the Department for Work and Pensions “over the coming months and years”. 
 

As well as this focus-group style assembly, the report recommends public dialogues with defined cohorts and an open call for public submissions, to help make sure that pensions are fair and sustainable.   

“Public involvement and consultation are not new to pensions policy. Following the recommendations of the 2006 Pensions Commission, the Department for Work and Pensions commissioned the National Pensions Debate,” said Catherine Foot, director of the Standard Life Centre for the Future of Retirement.   

“Today’s pensions challenges involve difficult trade‑offs and long‑term consequences. Deliberative approaches stand out for their ability to support the public to engage with these issues in a meaningful way, helping policymakers to ground reform in public values as well as technical evidence,” she added. 

Timpson, who sits on the Financial Inclusion Commission with Foot, said pensions reform must be grounded in public values and consensus across the generations. He pointed to the difficult trade-offs in every reform – including doing nothing – such as raising retirement ages, or changes to auto-enrolment contribution rates. 

“I view public engagement and deliberation as essential. Change must be done with individuals, not to them, particularly at a time when the state pension system faces questions over sustainability and there is a need to address the pension adequacy challenge,” he said.    

Master trust Nest recently convened a deliberative member assembly. The scheme found that, “when given the opportunity, members are willing to engage with complex questions about how their money is invested”, said Camilla Egginton, chief transformation and strategy officer at Nest Pensions. “Low day-to-day engagement should not be mistaken for indifference. Our experience shows that deliberative approaches enable people to weigh trade-offs, form informed views, and play a constructive role alongside expert-led policymaking.”   

The collaborative project had “thoughtful input from across the pensions sector, considering a variety of perspectives”, said Irenie Ekkeshis, co-founder and director of the New Citizen Project, adding: “We are incredibly hopeful about the momentum we have built together and look forward to seeing how this vital work develops.”

Would listening to the people give pension reforms a better chance to end up being fair and sustainable?