In a keynote speech yesterday at the National Association of Pension Funds' (NAPF) annual conference in Manchester, Segars applauded the "green shoots of pensions recovery" triggered by auto-enrolment. "Auto-enrolment is turning the UK from a nation of pensions shirkers into a nation of pensions savers," she said.
However, Segars also outlined two "outstanding issues" for the pensions industry: raising contribution rates and helping small businesses.
She said while an 8% pension contribution rate is a good start and "certainly better than zero", 12% or 15% should be the benchmark.
"We need to start managing expectations now and set the trajectory so that it is a gradual increase," said Segars. "This is a challenge for the next Government not the one after that or the one after that."
"I recognise that it's difficult to have these types of discussions, but we can't dodge them."
SMEs are real challenge
The NAPF CEO also said the real challenge is still to come with SMEs yet to auto-enrol. "We need to get it right for them" she said. "We've learnt there are four major challenges to auto-enrolment: complexity, capacity, change and communication."
Segars used her speech to launch the NAPF's, Auto-enrolment: One Year On report, which claims employers back the reforms and employees are relieved to be saving.
The report showed an extra 120,000 people are saving for the first time, with participation rates of around 95% and opt-out rates lower than expected.
In a breakout session earlier in the day Mike Acred, pensions manager at insurance company LV=, agreed that employers need to help employees understand how much they need to save for a comfortable retirement.
"Auto-enrolment will get people saving but as an industry we need to get people saving more," he said. "That needs real commitment and attention."
