‘think’ thought leadership series

The ‘think’ series aims to promote debate on topics across the spectrum of actuarial work and beyond. It looks to provide a platform for members and stakeholders to share views that may differ from the IFoA’s ‘house’ view.

Through this, we hope to challenge the status quo within the profession, question orthodoxy, and shine a light on complex or under-examined issues. At its heart, the series is about stimulating discussion and dialogue to help tackle issues from a different perspective.

Edition 21: Time to get real

The 21st edition of our ‘think’ series has been authored by Glyn Bradley FIA C.Act, Chair of the IFoA Pensions Board.

'Time to get real: building guided retirement in a world with inflation' argues that retirement products, default pension solutions and benefit illustrations should be designed around maintaining purchasing power throughout retirement, rather than focusing on nominal income levels.

Drawing on developments in guided retirement policy, behavioural research and pensions regulation, the paper explores why inflation should be treated as a core retirement risk. It considers how product design, member communications and retirement income illustrations can help people make better-informed decisions and achieve more sustainable retirement outcomes.

Timely as the pensions industry prepares for the implementation of guided retirement, the paper contributes to ongoing discussions about how default retirement solutions can best serve millions of pension savers.

Read the full piece to discover why Glyn argues that inflation protection is a matter of public interest and why retirement systems should be built around incomes that retain their value in real terms throughout retirement.