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We must adapt now for the next generation of retirees Otto Thoresen

The pensions industry must consider a new approach for helping the next generation of retirees, according to ABI director general Otto Thoresen.

Speaking at the National Employment Savings Trust (NEST) Annual Forum today, Thoresen said the impact of pension reforms “changes forever the retirement landscape in the UK".

In his speech, he said it was important to consider:

  • How the increased likelihood of a need for long term care in a person’s retirement years impacts on how the industry, Government and savers respond to planning for later life
  • How the development of enhanced annuities that are increasingly personalised and require some form of underwriting affect the process of making decisions at retirement
  • How the industry will deal with the sheer scale of individuals reaching retirement with a defined contribution pot which they want to turn into retirement income
  • How the industry engages a generation of automatically enrolled savers to start thinking about their needs and options at retirement early enough to make a difference

Thoresen said: “We will need a new approach and now is the time to start thinking about this approach.

“It is the pension industry’s job to respond with retirement solutions. And our regulators - all three of them - in their role of making markets work well, will need to be at the table at the start with us as we develop these solutions.

“The regulators will also need to find ways to enable customers to benefit from right framework for advice and guidance in this new retirement world.”

To read Otto Thoresen’s speech in full, click here.

The future of pensions will form part of the debate at our major insurance strategy conference 'Meeting the challenges of a changing world' on July 9 in London. Click here to visit our dedicated conference website and reserve your place.

Last updated 01/07/2016