Baroness Morgan: 2021 will see a greater spotlight on pension assumptions

Post-2020 we can expect to see a greater degree of scrutiny of the underlying risk assumptions of pension schemes, according to Baroness Morgan, the former Culture Secretary.

Morgan was speaking as part of this year’s Minds & Machines Forum, organised by Fitch Learning.

She suggested that some of the assumptions underlying pension pots – particularly underlying property assumptions – may change as we go into 2021.

Her comments were made as part of a wider reappraisal of the working environment in the post Covid-19 world.

Morgan called for greater diversity in the workplace, citing the importance of the ‘Black Lives Matter’ movement and stressing that the old adage that ‘you can’t be what you can’t see’ is now more important than ever.

She also urged a greater degree of ‘cultural intelligence’, calling for a real awareness of people’s culture and backgrounds in the workplace, especially for those in leadership positions.

“Learning good behaviours from senior people will be vital,” she said.

Another issue raised by Morgan was the role of universities in supplying the workforces of the future for the financial services market:

“Will future employees be graduates? One of the fall-outs from the pandemic will be people looking at university and thinking ‘is the right thing to do?’”.