In this episode, we discuss the challenges facing the UK retirement market as it transitions to a future defined by value, scale, and sustainable outcomes, with our guest Mike Ambery, Retirement Savings Director at Standard Life.
Risk, Return and Responsibility—the monthly podcast from Sustainable Investor—provides
institutional asset owners with the news and views shaping the sustainable investment
landscape and our wider economic and social systems.
In this latest episode, former UK Pensions Minister Guy Opperman and Sustainable Investor
Editorial Director Chris Hall are joined by Mike Ambery, Retirement Savings Director at
Standard Life, part of the Phoenix Group. Together, they explore the seismic shifts facing the
UK retirement market as it transitions from a legacy of cost-containment toward a future
defined by value, scale, and sustainable outcomes.
The discussion unpicks the upcoming Value for Money (VfM) framework and the Pension
Schemes Bill, examining how performance metrics will reshape asset allocation and drive
industry consolidation. From the ‘herding’ risks seen in Australia to the impact of the
Mansion House Compact and shifting geopolitical attitudes toward ESG, the panel identifies
the challenges of delivering ‘triple wins’ for government, consumers, and the planet.
Guests
● Mike Ambery: Retirement Savings Director at Standard Life (Phoenix Group) and a
prominent pensions market commentator.
● Guy Opperman: Former UK Pensions Minister and host.
● Chris Hall: Editor-in-Chief of Sustainable Investor.
Interview Highlights
● Will the Value for Money (VfM) framework truly improve member outcomes?
Ambery argues the core purpose of VfM is to improve individual outcomes by looking
beyond just investment performance to include service quality. However, the industry
must pivot from a cost-based system established in 2012 to one that prizes long-term
value and sustainable investment strategies.
● Does the VfM framework conflict with sustainable investment goals? The panel
expresses concern that a narrow focus on performance metrics could hinder
sustainable investing if not properly implemented. Chris Hall notes that ‘forward-
looking’ metrics must be independently assessed and paired with clearer guidance
on fiduciary duty regarding systemic risks to ensure sustainability isn’t sidelined by
short-term data. To reach a ‘triple win’ by 2030, the panel suggests that VfM must be
part of a broader package including industrial policy and stewardship.
● Does the Australian model risk creating a ‘herding’ mentality? While
consolidation is necessary for scale, Opperman warns that benchmark-driven
performance tests can lead to “groupthink” as providers scramble to avoid being in
the bottom percentile. Ambery agrees that while “sunlight is the best disinfectant”
transparency must be paired with measures that reward diverse, productive asset
allocation rather than mere imitation.
● Why is scale critical for the future of sustainable investment? To effectively
deploy capital into private markets and sustainable solutions, Ambery suggests firms
need significant scale—pointing to Phoenix Group’s £300 billion capacity as an
example of what is required to support dedicated research and impact teams. He
identifies A$25 billion as a potential minimum threshold for organisations to operate
effectively.
● How will global policy trends, including the “Trump impact” affect the City?
Despite political rhetoric reclassifying ESG in the US, Ambery believes the UK’s
commitment to these factors remains pivotal. Chris Hall notes that as the US takes a
differing view, there is an opportunity for a “middle way” led by the UK, EU, and
Canada to drive a secure energy transition.
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