Pensions UK 2025 – Discussing the industry issues that matter

The annual Pensions UK Conference is always a highlight in the pensions industry events calendar. It’s great not just to hear the talks from the movers and shakers of the industry, but to have a chance to hear from the trustees, sponsors and other industry professionals about their concerns and the issues that matter to them.

At this year’s conference we once again recorded a special mini-series of Beyond Curious with LCP. We heard from leading voices in the industry on the big questions shaping pensions today and tomorrow.

From climate risk and retirement design to CDC and intergenerational fairness, the conversations gave us lots of food for thought. Here’s what stood out.

Climate change: A little less tick box, a little more action

The government has recently consulted on UK companies and financial institutions developing and implementing climate transition plans, throwing the need for action on climate into sharp relief.

David Russell from the Transition Pathway Initiative discussed how carbon footprinting, while useful, is a backward-looking measure. What matters now is how companies plan to transition, and whether those plans stand up to scrutiny. With thousands of companies now being assessed on management quality and carbon performance, the tools are improving. But the challenge remains in how to turn disclosure into real-world impact.

Tegs Harding, Head of Sustainability at IGG, echoed this shift in mindset. She spoke candidly about the limitations of portfolio decarbonisation as a strategy, especially in light of political pushback and economic headwinds. She believes that it’s important to focus on adaptation, physical risks, and resilience. Climate change is already affecting asset prices and insurance viability, so it’s no longer right to frame this as a future problem.

Dan Mikulskis, Chief Investment Officer at People’s Partnership, added a different perspective, questioning whether mandatory transition plans for pension schemes actually achieve anything. His view is that the industry already produces hundreds of pages of RI reporting. What is needed is a clearer business case for transition, and the capability within teams to act on it.

Post-retirement solutions: Getting it right for real lives

Retirement is about real lives and models can only say so much, according to Dawn Anderson, Head of Workplace Proposition at Aviva and Mithesh Varsani, Head of Investment Solutions at Scottish Widows. They both shared their latest thinking on post-retirement solutions in a really interesting conversation.

Aviva’s Guided Retirement model offers a three-pot approach: drawdown, annuity and occasional spending. It’s designed to give members flexibility and control, while still providing structure and stability. Scottish Widows is taking a hybrid route, combining digital tools with targeted support and advice to help members navigate their options.

While the products are different, both providers are grappling with the same challenge. How do you support members through a complex, multi-decade journey especially as cognitive decline becomes a reality in later life? A product itself isn’t the magic bullet – power of attorney, pre-commitment mechanisms and simplified defaults are all part of the solution.

There’s also the issue of consolidation. With members holding multiple pots and facing conflicting messages from providers, the industry needs to get better at helping people make informed choices. Open finance and dashboards will help, but so will clearer communication and a shared understanding of what “value for money” really means.

Intergenerational fairness: CDC and the challenge of equity

CDC (Collective Defined Contribution) schemes are gaining traction, but they’re also raising tough questions about fairness.

Tegs Harding highlighted the tension between actuarial pooling and perceived equity. Her example of a lorry driver in Blackpool subsidising a lawyer in London was a stark reminder that longevity isn’t evenly distributed. The key question for her is should CDC schemes reflect that and if so, how?

There’s also the question of survivors’ benefits, tax-free cash, and scheme design. CDC can offer better average outcomes than DC, but comes with additional challenges, such as issues of intergenerational fairness, which need to be addressed. That means being transparent about trade-offs and designing schemes that reflect modern family structures and diverse life paths.

Dan Mikulskis pointed out that CDC could help address adequacy but only if it’s done right. That means building consensus, investing in capability, and thinking carefully about who benefits and who doesn’t.

Since the Conference, the government has published the multi-employer regulations, opening the gates for CDC to become more widely adopted. Our new report The Future of Pensions? analyses how employers should approach the question of whether CDC is the right option for their employees. More employers will  be able to actively explore CDC now it’s no longer a theoretical model.

It's clear from our podcast conversations that as more schemes come online there will be a sharper focus on fairness, communication and member experience. It will be interesting to see what topics around CDC will be important at next year’s conference.

Investment mandation: Should we all “chillax”?

The Pensions Minister told the conference that the industry needs to “chillax” when it comes to Government mandation powers in the Pension Schemes Bill, in response to concerns that mandating investments could undermine the duty of trustees to act in their members’ best interests.

Dan Mikulskis offered a grounded take, suggesting that for many schemes, the direction of travel toward UK investment was already underway. The Mansion House compact, in his view, is less about mandating behaviour and more about solving a coordination problem, particularly in competitive markets where moving alone can feel commercially risky.

Dan also highlighted the importance of building internal capability to invest directly in infrastructure and real estate, rather than relying solely on external managers. And he drew a useful distinction between primary and secondary capital, highlighting that real economic impact comes from investing in new projects, not just trading existing assets.

It’s clear that the real opportunity lies in unlocking scale, capability and confidence across the industry when it comes to shepherding pension schemes to invest for growth.

Reflections on Pensions UK Conference 2025 – 2030 Ready

Thank you to all our brilliant guests who stepped into our podcast booth at this year’s conference. As we look ahead to 2030, it’s clear that the future of pensions will be shaped not just by regulation, but by bold thinking, collaboration and a willingness to challenge the status quo.