Pensions skillsets need to develop
The pensions market is a in a real growth stage and we have seen huge increase in demand for consulting based roles across all aspects of pensions advice, especially within DC & investment consulting. However, we are also seeing the need for internal experts to manage pension operations on behalf of organisations. With closed DB pension schemes now listed on the balance sheet, firms have to be mindful of the debt as it is closely linked to the financial performance of the organisation. In March last year, it was publicised how Tesco was changing it’s DB pension scheme to a DC one. While reporting the worst financial results in its history, it was also announced that its pensions deficit had grown from £2.6bn to £3.9bn in the space of a year. With Tesco committing to paying back £270 million a year to recoup the deficit, the company was not the popular choice for investors it once was.
This growth is not showing any decline and with even more changes to legislation predicted to come, is the increased workload going to be manageable? In the UK, skill shortages are regularly talked about across different sectors such as IT, construction etc. However not yet within pensions…
Based on the increased number of employers entering auto-enrolment this year alone, it can be correlated to a huge increase in demand for services. And speaking with specialists across the market, they are only expecting further growth;
So will there be skilled labour available to cover the demand?
Talent planning is key within any industry but based on current predictions for the pensions market, it is becoming essential for firms to handle the situation with forethought. The next twelve months will be an interesting time in the pensions space, but with this expanding industry, I wonder if this is a skill shortage waiting to happen.