London, UK – 2 September 2024: The partnership furthers IGG’s ongoing commitment to address the challenges the pensions industry faces through systemic risks such as climate change, biodiversity loss and income inequality. This association and the wider Pensions for Purpose Community has been set up to accelerate the sharing of knowledge and investment in assets that benefit people and the planet. This is the first linking of Pensions for Purpose with a professional trustee firm.

IGG is a leading, independent trustee firm that provides professional trusteeship and associated governance services to over 390 pension schemes. Pensions for Purpose is the fast-growing independent membership organisation helping pension funds invest for impact.

Charlotte O’Leary, CEO of Pensions for Purpose, said: “We are delighted IGG is joining us as a Community Partner. With their tremendous reach as professional trustee to a large number of UK pension schemes, IGG is influential in helping schemes navigate the challenges of climate change, biodiversity loss and the inadequacy of defined contribution (DC) pension provision.”

Tegs Harding, Head of Sustainability and Trustee Director at Independent Governance Group, said: “Ensuring pension funds are managed with a sharp focus on sustainability is a key value and focus area for us. This closely aligns with Pensions for Purpose’s core mission of empowering industry stakeholders to value people and planet alongside profit. Through our partnership, we will be able to support and promote the purpose-driven work undertaken by this organisation, providing trustees and stakeholders with the tools and knowledge they need to make informed, decisions that positively impact both beneficiaries and the broader community. We look forward to taking on the role of an active partner, helping to transform the pensions and investment landscape for the better.”

This partnership builds on work carried out earlier this year between Pensions for Purpose and IGG where both parties joined forces to collaborate on the inadequacy of pension savings for people who retire without owning a home.

The initiative focused on the impending crisis facing the first generations to retire with only their DC pension pots. According to Pensions Policy Institute research, 20% of these retirees will find themselves in private rented housing, potentially requiring between £179,000 and £315,000 more in their pension pots just to cover the cost of rent. For many, particularly those who are not among the highest earners, this financial target is unattainable under the current system.

Pensions for Purpose and IGG have a number of broader concerns, including the increasing number of people with mortgage terms extending beyond retirement age, necessitating continued payments from their pensions. Furthermore, the inadequacies of the benefits system means those needing to claim housing benefit or disability support at retirement will not fully recoup the savings made through their pensions.

These issues influence how pension schemes should communicate with their members and also affect the targets set within retirement models and the design of default investment strategies. While reforms like higher contributions through auto-enrolment will benefit future pension savers, the challenges faced by those over 45 today require urgent and comprehensive policy changes.

As a Community Partner of Pensions for Purpose, IGG is committed to advocating for a long-term pensions commission to examine the intersection of pensions, benefits and housing. This commission would be important in ensuring the industry does not continue to overlook these pressingmatters.

In the meantime, IGG believes it is essential to start engaging with people about their future housing plans in retirement, helping them to make informed decisions that will impact their financial security.

Richard Giles, Senior Director & Community Lead at Pensions for Purpose, said: "There are no easy fixes, but a long-term pensions commission looking at the interaction between pensions, benefits and housing is desperately needed."

About Pensions for Purpose

Pensions for Purpose exists as a bridge between asset managers, pension funds and their professional advisers, to encourage the flow of capital towards impact investment. 

Impact investments are made with the intention to generate positive, measurable, social and environmental impact alongside a financial return. 

Pensions for Purpose seeks to empower pension funds to make informed, sustainable investment decisions through our member Community, training, events, Impact Lens research and unique Knowledge Centre. 

About Independent Governance Group

Independent Governance Group (IGG) is the UK’s leading provider of professional pensions trusteeship and governance services.

Widely viewed as a leader in its field, professional pension trusteeship and scheme governance services are at the heart of IGG’s offering and are delivered through a combination of chair of trustees, co-trustee and professional corporate sole trustee appointments. Over 150 of IGG’s appointments are to act as professional corporate sole trustee. Pensions support services strengthen the business’s professional trusteeship side of the business, and provides secretarial, pensions managerial and governance solutions for over 100 appointments.

The 240+ team includes pensions expertise drawn from many different backgrounds, such as pensions managers and consultants, lawyers, investment specialists, and actuaries. The team is known for providing diversity of thought and wide-ranging collective experience.

The team works with over 390 schemes with a combined asset value of approximately £322bn. Schemes range in size from the low millions to multi-billions, with over 10% of IGG’s schemes being £1bn+.

IGG is a multi-award-winning active member of the Association of Professional Pension Trustees (APPT). Members of the group play a prominent part in APPT committees, and all Trustee Directors are fully accredited as professional trustees.

Learn more about our Community Partners

Press contact:

Material Impact Marketing Communications
Daniel Jason: [email protected]

This partnership was also covered in:

IFA Magazine
Impact Investor
Pensions Age
Professional Pensions