PPI Corp brox layout 11_02_21

Better informed policies and
decisions that improve later life
outcomes

Welcome to the PPI
We’re an educational research organisation devoted to improving retirement
outcomes. We do this by being part of the policy debate – providing objective
analysis, facts and modelling to directly influence decision making.
The retirement, pensions and later life market are undergoing fast-paced
changes brought about by legislation, technology, and the economy.
Robust, independent analysis has never been more important to shape
future policy decisions.
Our work facilitates informed decision making by showing the likely outcomes
of current policy and illuminating the trade-offs implicit in any new policy
initiative.
We’re completely independent. We do not lobby for one particular cause or
outcome. We’re unbiased – we are not affiliated to any political party. We have
no shareholders to satisfy. Our work delivers rigorous, impartial research and
has done for 20 years.

A note from our Director...
Since 2001 the PPI has been at the forefront of informing
the policy debate. We promote informed, evidence-based
policies and decisions for financial provision in later life by
providing independent research and analysis. We believe that
better informed policies improve later life outcomes. We are
fortunate within the industry, many organisations produce
good quality research.
Chris Curry
Director
So how are we different? Our research is unbiased. We are
not lobbying for any specific cause; we believe that better
information and understanding will help lead to a better
policy framework. And ultimately a better provision of
retirement income for all. By supporting the PPI, you will be
a crucial part of helping to achieve this.
The support of our members, research sponsors and
individual donors makes our work possible. Without you,
simply put, we would not exist.
My thanks to everyone that has been involved with the PPI
since 2001, our Governors, Council Members and staff. And to
our supporters - research sponsors and members, some of
whom are still members today, thank you!
As we look forward now to the next 20 years, we will continue
to be the trusted source of information, analysis, and
impartial feedback to those with an interest in later life
issues. The scale and scope of policy change creates even
more need for objective and evidence-based analysis. There is
still much to do, and we look forward to meeting the
challenge head on.
Chris
Curry

How we make a difference
Our research reports have informed policy making for almost 20 years – here’s
some highlights…
The Pensions
Landscape
Guide to State
Pension reform
Introduction of
Pension Credit
TPPI response to
the Pensions
Commission First
Report
What should be
the roles and
objectives of the
Personal Accounts
Delivery Authority
and Board?
Pensions Act –
State Pension
reform, increases
to State Pension
age
Would allowing
early access to
pension savings
increase
retirement
incomes?
Used in HM
Treasury’s call for
evidence in 2011
Default retirement
age abolished
Budget 2009 –
limiting tax relief
for those earning
more than
£150,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
PPI submission to
the Work and
Pensions Select
Committee
Tax relief and
Incentives for
Pension Saving
Briefing Note 15 –
Can current
pension policy be
as good as the
alternatives?
Introduction of the
Pensions
Regulator and the
Pension Protection
Fund
Pension
Commission 1st
report
Submission to the
House of
Commons Work
and Pensions
Committee’s
inquiry into
pension reform
A-day (pension
tax
simplification)
PPI’s submission
to the Pensions
Bill Committee
2007/2008
Pensions Act –
Pension Act
automatic and
PADA
PPI Submission to
the DWP Review:
Making autoenrolment
work
Increases to
women’s State
Pension age began
Introduction of
the triple-lock
Age 75
annuitisation rule
reviewed
The implications
of the Coalition
Government’s
reforms for
members of the
public service
pension schemes
Used in a PPI
submission to the
Public Service
Pensions Bill
Committee
Implementation of
Automatic
Enrolment

Automatic
Enrolment Report
1: What level of
pension
contribution is
needed to obtain
an adequate
retirement income
Used in
'Strengthening the
incentive to save'
report, a review of
tax relief by
HMRC
PPI response to
the Work and
Pensions
Committee’s
inquiry:
Understanding the
new State Pension
Modelling
Collective Defined
contribution
Schemes
Pension freedoms
implemented
Review of pension
tax relief
DC charge cap
implemented
Public sector
pension reforms
began
Consumer
engagement:
barriers and biases
Used
in DWP report on
AE review
Contributions into
the State Pension
system versus
receipts for people
of different income
and employment
profiles
Used in
independent State
Pension age review
Automatic
Enrolment review
State Pension age
review released
Supporting later
life
Briefing Note 111
– DC scheme
default strategy
policy
considerations
Pensions Bill
introduces CDC
legislation
2013 2014 2015 2016 2017 2018 2019 2020
2021
PPI submission to
the HM Treasury
Consultation
Freedom and
Choice in Pensions
Pensions Act – new
State Pension
Introduction of the
new State Pension
PPI submission to
DWP call for
evidence NEST:
Evolving for the
future
Briefing Note 110 –
Lost Pensions:
what’s the scale
and impact?
Used in DWP
report on Pensions
Dashboards
State Pension
equalisation
Policy options for
tackling the
growing number
of deferred
members with
small pots
State Pension age
increases to age 66

Why get involved?
Be part of the debate
Our reports are well respected by government and organisations alike,
and frequently used to inform policy. You can be part of the policy
debate by commissioning an impartial, fact-based research report.
Improve retirement outcomes
When you become a member or commission a research report you’re
informing the policy debate and helping to shape the future decisions
for pensions and later life finances. You’ll also help to inform your own
product propositions based on evidence, testing and modelling.
Analyse independently
Completely independent, unbiased analysis of pension and retirement
income-related issues – bringing robust credibility to findings and
recommendations. No hidden agendas or politics, just cold hard facts,
used to shape the future.
Enhance thought leadership
Trustworthy content underpinned by impartial research will add
credibility to both your message and your brand. From media headlines
to presentations at industry events – commissioned research gives you
so much more than one report.

How to get involved
You can support us in many ways:
Read and share our reports
Use our key findings and models to support your own material and
propositions
Attend our events
Become a member
Commission a research report
Our research supports any organisation with an interest in improving later life
savings and outcomes.
Our members help us make a difference
We can only do what we do due to the ongoing support of our members and research
sponsors. Our supporters help improve later life outcomes by providing robust and
reliable evidence, enabling us to produce unbiased, factual research. This could be a
topic that they’re keen to explore or one we can develop together.
Our activity is funded solely through the support of our members, individual donations,
and research sponsorship. We don’t receive government funding or bursaries, so without
this vital support we would not be able to continue to shape the future of policy.
Ways you can help make a difference...
Platinum,
Gold or silver
member
Associate
member
Research
sponsor
Donations

Words from our supporters...
Case study: Policy options for tackling the growing number of deferred
members with small pots
The number of deferred pension pots in the UK Defined Contribution (DC) master trust
market is likely to rise from 8m in 2020 to 27m in 2035. Member charges generally erode
small, deferred member pots over time and small pots can also be financially unsustainable
for providers to manage.
Altering charging structures is unlikely to solve the problems associated with small, deferred
member pots, as charges either erode member pots or prevent schemes from breaking even on
pot management. Any costs providers are unable to recover through the current system will
need to eventually be passed on to members through higher charges.
If DC pension pots are to remain financially sustainable for both members and providers, a
more strategic policy based approach, exploring options for pot consolidation, is required.
Our work explored the potential outcomes on the number of deferred pension pots, charges
for members and costs for providers of a range of policy options.
The sponsor wanted PPI's independent analysis to shine a neutral light onto this area and lift
it up the public policy agenda, which was achieved when DWP subsequently set up a Small
Pots Working Group.

A note from Sarah Luheshi
When it comes to research our mission is simple, we aim to
provide research which promotes informed, evidence-based
policies and decisions for financial provision in later life.
Sarah Suheshi
Deputy Director
Our rigorous control procedures and strong, transparent
governance process ensures that we always maintain our
independence and our research is always balanced. We’re an
essential part of the informed, evidence-based policy-making
process.
We’re proud that our research is used frequently by
Government, Parliament, industry, consumers, academics, trade
bodies, consumer groups and the media to improve policy and
individual outcomes.
Our research is used because it is trusted and respected. We
combine desk research and secondary qualitative and
quantitative data using a range of known data providers. We
analyse using a mixture of cluster and statistical analysis tools
and techniques. Our bespoke suite of micro-simulation models
can analyse long-term outcomes from current pension systems
and potential reforms. Allowing for scenarios to be modelled
which illustrate impacts to both individuals and expenditure
cashflows to the Exchequer.
As a small team of dedicated and passionate researchers, we
present high quality, accessible, rigorous, peer-reviewed
research designed to facilitate the right conversations. Our
modelling capability under-pins our analysis and makes us
unique. We constantly enhance and improve our models and
modelling capabilities to ensure that the suite remains the ‘best
in breed’.
Sarah Luheshi

Looking forward
The greater complexity of UK pensions, combined with more people saving than ever before,
means there’s a greater call than ever for independent research. There is more work to do to
analyse the impact of policy and to identify what changes would produce better outcomes.
We are working on two strategic initiatives:
The pensions data project:
A data amalgamation project to provide an
insight into people's savings patterns.
Initially, it will aggregate across trust based
DC pots - generating the largest
longitudinal study of the DC market.
In the longer term, there will be an
opportunity to include: DC contract based,
DB, decumulation data and other data sets.
This will provide a unique single data set
that will show: average number of pots,
frequency of provider change, total
pension wealth and change over time. This
will inform evidence based policy making.
You can find out more at
pensionsdataproject.org.uk
Pensions framework project:
A comprehensive framework to evaluate
the UK pensions system and the impact of
policy changes over time. Using consistent,
tailored and robust measures, it will assess
the impact of policy against key objectives
and highlight where interactions between
system components result in trade-offs and
gaps.
This framework will be developed in
collaboration with industry and policy
advisors. Covering both state and private
sector pension provision - analysed against
adequacy, affordability and sustainability.
Analysis will be enriched by pervasive
themes including fairness, efficiency,
compatibility, simplicity and integrity.

Core research themes
Our research is centred around three key themes:
Affordability
Sustainability
Adequacy
Key stats and figures

Contact:
Company
number:
Charity
number:
info@pensionspolicyinstitute.org.uk
020 7848 3744
www.pensionspolicyinstitute.org.uk
4145584
1087856
Registered
Office:
King's College
Virginia Woolf Building
1st Floor
22 Kingsway
London
WC2B 6LE