Good morning, distinguished guests, colleagues, and friends.  

It is my honor to welcome you to the World Pensions Conference here in London - a city that has long been a hub for global finance and innovation. We convene at a pivotal moment for the pensions industry, both in the UK and worldwide. 

The geo-economic landscape has shifted dramatically in recent years. We are navigating the aftershocks of the COVID-19 pandemic, heightened geopolitical tensions, accelerating climate risks, and rapid technological transformation.  

These forces are reshaping economies, societies, and the very foundations of retirement security. As leaders, policymakers, and stakeholders, we must adapt decisively and seize the opportunities these changes present. 

This year's conference reflects the critical juncture we face in the UK of shaping a pensions system that delivers security for savers while supporting sustainable economic growth. But these are not unique issues. Our challenges are global - and so must be our solutions.  

Perspectives from Australia, Canada, the US, and Europe will enrich our dialogue, because the issues before us transcend borders. 

To get the debate started, I’d like to provide a brief recap on where the industry is today and share some of the PMI’s views on the most pressing issues, all areas which feature on the Conference agenda.  

The UK pensions landscape is evolving rapidly.  

While Defined Benefit provision remains a key focus in terms of endgame planning, it is Defined Contribution (DC) schemes that now dominate, shifting responsibility for retirement outcomes increasingly onto individuals.  

At the same time, demographic pressures, market volatility, and the urgent need to channel capital into productive assets demand bold action. 

Government reforms - most notably the Mansion House agenda - are designed to unlock this potential. Under the Mansion House Accord, 17 major providers managing 90% of active DC savers have pledged to allocate 10% of their default funds to private markets by 2030[1], with at least half invested in UK assets. This could mobilize £50 billion [2] for infrastructure, property, and private equity, injecting £25 billion [3] directly into the UK economy. 

The scale of this ambition is significant.  

UK pension assets now stand at £3.2 trillion [4], up 11% year-on-year [5]. Globally, pension assets have reached US$58.5 trillion [6], and the trend toward alternatives is accelerating, with private markets now accounting for 25% [7] of global pension portfolios. 

Private markets offer compelling opportunities for diversification and enhanced returns. 

Historically, these assets have delivered an illiquidity premium of 2-3% [8] above public markets over long horizons.  

However, the UK DC market is starting from a low base - fewer than half [9] of the largest multi-employer DC schemes currently have any private market exposure in their default funds. 

The PMI supports the ambition to allocate a greater proportion of DC defaults to private markets by 2030, but stresses that implementation must be measured and transparent. 

Illiquidity, valuation complexity, and governance risks require robust oversight.  

Trustees and asset managers must ensure that diversification does not come at the expense of prudence, or their fiduciary duty.  

To be clear, we wholeheartedly support the broader principle in the UK Pension Schemes Bill, currently making its way through Parliament, that scale can deliver better outcomes, and we welcome proposals to improve transparency and governance.   

But we have expressed serious concern over provisions that would allow the government to mandate pension scheme investments. I am sure this topic will feature strongly at Conference.  

Alongside investment reform, technology - particularly artificial intelligence - is reshaping our industry.  

Surveys show that 87% [10] of UK pension firms already use AI, and by 2035, nearly 80% [11] expect AI to be central to member engagement, with applications in fraud detection, data security, and personalized retirement planning. 

AI can streamline administration, reduce costs, and enhance decision-making through predictive analytics.  

But PMI's position is clear: technology should support, not replace, human judgment. Trustees carry fiduciary duties that algorithms cannot discharge. We advocate for strong governance, transparency, and accountability in AI adoption.  

We must never lose sight of the ultimate purpose of pensions: to provide security in retirement. That means setting clear long-term funding targets and aligning investment strategies with those objectives.  

The PMI encourages schemes to adopt journey plans that anticipate future risks - market corrections, ESG considerations, and sponsor covenant strength - and to place a stake in the ground for where they want to be in 10 or 20 years. 

The UK pension fund market is projected to grow from £3.23 trillion [12] today to nearly £4 trillion [13] by 2030, driven by consolidation, auto-enrolment, and digital transformation. This growth underscores the importance of strategic foresight and disciplined execution.  

The challenges before us are significant - but so are the opportunities.  

If we get this right, we can deliver better outcomes for savers, unlock capital for growth, and ensure that pensions remain a cornerstone of financial security in an uncertain world. 

I’ve touched on a few of the issues we’ll debate at Conference, but there are so many more: climate risk, sustainability, diversity and inclusion and the critical issue of gender and social dynamics, highlighting the importance of women’s empowerment in the pensions sector.  

I urge each of you to engage fully in the discussions, share your expertise, and collaborate with your peers. The decisions we make here have the potential to shape the future of pensions for generations to come. Let us rise to the occasion and work together to build a more resilient, inclusive, and sustainable pension industry. 

Thank you