The UK’s savings system is at a tipping point. Millions are financially vulnerable, pension adequacy is deeply unequal, and too many people are forced to choose between saving for retirement and meeting urgent needs like housing or emergencies.  

This isn’t just a policy challenge - it’s a social imperative. No surprise then that the Pensions Commission has been revived, and why we are shining a light on the issues while helping to create a pipeline of new, qualified pension professionals.  

At the Pensions Management Institute (PMI), we believe real change starts with fearless debate. That’s why we launched the Lifetime Savings Initiative (LSI) - to ask the tough questions, challenge outdated assumptions, and help build a system that reflects the realities of people’s lives. It’s all part of our engagement with the industry, government, and regulators.  

One year on from the publication of its White Paper, the LSI is already reshaping how we think about savings, resilience, and retirement.  

A Year of Innovation and Insight 

At the heart of the LSI is a simple but powerful question: how can we help people save in ways that are both sustainable and flexible so they can prepare for retirement while also meeting life’s immediate needs?  

The traditional model of saving into a pension pot that’s locked away for decades doesn’t work for everyone. People face real trade-offs: saving for the future versus accessing funds now for housing, emergencies, or life-enhancing opportunities.  

In its first year, the LSI applied a systems-thinking approach - one of the first in the sector - to map how short-term savings, housing and retirement interact across people’s lives.  

This revealed three critical pressure points that shape long-term outcomes: financial resilience, housing access, and retirement adequacy. 

Using behavioural data and qualitative insights, the LSI modelled how individuals move through different financial “zones” over time. This challenged conventional levers like contribution rates and tax reliefs, instead highlighting the importance of liquidity, incentives, and access.  

It showed that real-world complexity demands policy frameworks that reflect people’s lived experiences, not their idealised savings journeys. 

The Reality of UK Savings 

The urgency of this work is underscored by the latest UK savings data1: 

• The average person in the UK has £16,067 in savings, but one in ten people have no cash savings at all, and another 21% have less than £1,000 to draw on in an emergency. 

• One in four people in the UK have low financial resilience, meaning they have missed payments, are struggling to keep up with commitments, or don’t have savings to help them through difficulties. 

• Only 36% of people feel on track for a comfortable retirement.  

• Pension resilience is deeply unequal: only 8% of the lowest income households are on track for retirement adequacy, compared to 68% of the highest income households. 

These figures paint a stark picture. The UK savings system is fragmented and unequal, and many people are falling through the cracks. 

Policy Proposals That Reflect Real Lives 

The LSI’s findings led to a series of forward-thinking policy proposals: 

• Integrated savings products that combine short-term access with long-term investment, helping people build resilience while preparing for retirement. 

• Contribution-smoothing mechanisms to support saving through income volatility or career transitions. 

• Digital engagement models that allow savers to manage multiple goals through a single interface-boosting transparency, trust, and confidence. 

These innovations are grounded in a collaborative policy model. The LSI has brought together regulators, fintechs, consumer advocates, and policymakers in an iterative, co-design process. This marks a shift toward more agile, inclusive policymaking- where solutions are tested and refined before formal adoption. 

Driving the Debate Forward 

At the PMI, we believe that meaningful reform begins with asking bold questions. That’s why we’re using the LSI to provoke debate and hopefully influence the Pensions Commission.  

We’re not just talking about money in and money out. We’re examining what happens to saver contributions throughout the accumulation phase and at retirement. What does that mean for savers? What needs to improve? 

Innovative thinking is crucial. Approaches like the NEST sidecar savings vehicle demonstrates the power of inertia in supporting employees with wider savings. But we need to go further.  

Future generations face pension incomes that are too low, risks that are too high, and a system that remains unequal. Even a small amount set aside can provide peace of mind and financial resilience - but only if the system supports it. 

A Call to Action 

The LSI has shown that fragmented systems don’t serve people well. We need frameworks that adapt to people’s lives, not the other way around. That’s why the PMI is committed to continuing this work, expanding the LSI’s approach to other pressing issues facing savers.  

And it’s why, through our industry-leading qualifications, we are empowering the next generation of pension professionals to meet the demands of a complex landscape and tougher regulatory expectations.  

We are not just observers in the pensions debate. We are active participants, shaping the future of savings policy in the UK to help build a system that works for everyone.