The pension fund industry faces significant challenges with an overall funding deficit of £140bn. Trustees are under pressure to address underfunding as companies are closing pension plans. The risks of pension plans running out of assets before paying all members poses a demographic time bomb. Governance issues are a major problem, with pension plans operating under Governance 1.0 which is not effective. A new online platform called Mallowstreet aims to help by connecting trustees to solutions providers and allowing knowledge sharing in the pension community.

2. The pension fund industry faces tough times ahead.

3. The aggregate deficit of the FTSE 350 pension plans is a staggering
£140bn with an overall funding level of just 77%.

4. Trustees are under intense pressure to fix the problem.

5. Companies are closing their pension plans to new members
and, increasingly, to existing members.

6. Plan closures are a defensive corporate strategy to mitigate
the risk of running out of assets before all members have
been paid their pensions. That risk is real.
For some pension
plans, this is a
realistic graph.

7. It’s a demographic time bomb...

8. ...because Generation Y may end up having to support their children
and their parents (if they’re not paid their pensions).
Gen X Gen Y Gen Z
- Born 1961 - 1976 - Born 1976 - 1991 - Born 1991 - 2006
- Now aged 32 - 47 - Now aged 17 - 32 - Now aged 3 - 18
- Realists - Fame and brand culture - Facebook generation
- Peak income earning 2006 - 2021 - Peak income earning 2021 - 2036 - Peak income earning 2036 - 2051
- Sandwich generation between - Technology savvy; global thinking - Live through online identities,
Baby Boomers and Gen Y - No savings culture or propensity to grow up early
- Will likely need to support Baby save for the future - Live in the moment
Boomers (1946 - 1961) in retirement - Will need to support their children - Kids of Gen Y
(Gen Z) as well as their parents (Gen X)

9. Some say the problem is that pension plan assets are falling.

10. Some say the problem is that pension plan liabilities are rising.

11. Multiple corporate insolvencies have added to the problem.

12. But another major problem is “governance”. Plans are operating in
Governance1.0, and it doesn’t work.
...in G1.0, the problem won’t be fixed.

13. Ten senior Trustees told us the problems with G1.0.
They outlined nine major issues:
1. We need more education to help us
understand the issues.
2. It takes too long to make decisions.
3. Once we’ve made a decision,
implementation takes ages.
4. We don’t have working relationships
with enough Solutions Providers.
5. It is not always clear who among
us is accountable for what.
6. It’s lonely being a trustee - it’s not easy 8. It’s difficult for sponsors and trustees
to ask the community for advice. to get on the same page.
7. Our consultants don’t always have 9. There’s too much information coming
all the answers. from all directions, and no way to sift it.

14. So we built mallowstreet.

15. Then we took mallowstreet to 100 trustees or so, and asked
them if they thought it was useful.

16. ...and they said: It’s great!

17. is a powerful online platform that brings the pensions
community together. mallowstreet puts pension fund trustees
in touch with Solutions Providers, and it allows all members to
connect to each other and share knowledge.

18. We’re building the community now, and we’d like you to join.
If you’d like to be part of mallowstreet, please register your interest.
We look forward to hearing from you!
Mackenzie Howe
- team