High expectations of industry change
Around 44% of pensions-industry professionals believe the sector will see significant structural change by 2035 or sooner. Over a quarter (28%) expect such shifts within the next five years. Most respondents agreed that the pace of reform is accelerating as demographic and economic pressures intensify.
Despite these challenges, 77% said they believe the industry will successfully adapt by the 2030s, and more than one in five described themselves as very or extremely confident. However, preparedness remains uneven: only 5% felt “fully prepared,” 34% said they were “very prepared,” and nearly half admitted they were only “somewhat prepared” for what lies ahead.
Concerns around DC outcomes
The future of Defined Contribution (DC) pensions remains the dominant concern. Nearly three-quarters of those surveyed said they were worried about the adequacy of DC outcomes as reliance on these schemes grows and traditional Defined Benefit (DB) provision declines. Many expect that without significant policy reform, more people will have to work longer or risk retiring with insufficient income.
While DC schemes drew the most attention, 18% of respondents also highlighted risks within the DB sector. Skills shortages, over-consolidation and concentration of investment exposure were cited as ongoing challenges. Beyond occupational pensions, the sustainability of the state pension system remains a major worry. Industry figures pointed to uncertainty around the future of the Triple Lock, an ageing population, and a shrinking contributor base as factors likely to strain the system. Several also warned that political instability could complicate long-term planning.
Regulation, governance and communication concerns
Respondents expressed frustration at inconsistencies in governance and regulatory frameworks. Complexity and overlapping guidance were seen as drivers of higher costs for both schemes and savers. Many argued that clearer communication and more stable policy direction would help restore confidence across the system.
Despite the apprehensions, the outlook appears to be largely optimistic. More than 60% of respondents identified technology as the biggest opportunity for the industry, highlighting innovations such as dashboards, artificial intelligence and advanced data analytics to improve administration and engagement. However, a quarter (27%) expressed concern that technology may fail to drive positive behavioural change among savers. Environmental, social and governance (ESG) investing, alongside greater exposure to UK productive assets, was also viewed as a route to both stronger domestic growth and improved saver outcomes.
Priorities for reform
Respondents called for a range of reforms to strengthen outcomes and resilience. The most common priorities included higher contribution levels, reforms to automatic enrolment, better default options within DC schemes and clearer pathways into retirement. Simpler communication and greater political stability were also cited as essential for restoring trust in long-term savings policy.
Industry collaboration and future direction
Pensions UK Executive Director of Policy and Advocacy, Zoe Alexander, called it a “one-in-a-generation opportunity” for the pensions industry, and said the research could prove a catalyst for proactive change across the sector. “Now is the time to get ahead of change and shape the next decade for the pensions sector,” she said. “Our 2030 Ready: Industry Lens report brings together the views of members and wider industry experts, giving a detailed picture of the challenges and opportunities ahead.”
Luke Carter, Regulatory Consultant at Equiniti said,
The industry is facing a defining period of change. As economic pressures grow and the shift from DB to DC continues, we’re seeing real concern about how savers can achieve adequate outcomes in retirement. The sector’s adaptability has always been one of its strengths, but it’s clear that clearer governance, stronger defaults and smarter technology will be vital in shaping the next phase of pensions reform. Any change should have the members as the core, as an industry we need to remember that we provide and invest for them.”
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