The Pensions Regulator published findings from a Pension Policy Institute report it sponsored on the UK retirement income market, highlighting gaps in support for defined contribution pension savers as they move from saving to drawing down. The regulator said many retirees either withdraw their pots as cash or remain invested in strategies designed for pre-retirement, outcomes that may not align with long-term retirement goals, and it called for a retirement sat-nav to simplify options and support informed choices. The update emphasised stronger governance and transparency in post-retirement investment strategies and urged trustees to make more systematic use of member data to better understand saver characteristics and tailor communications and targeted nudges. It also reiterated a focus on data standards through TPR’s data strategy and work to prepare schemes for pensions dashboards, including an existing video campaign aimed at improving industry readiness. On market structure, TPR continued to back further consolidation, particularly among master trusts, citing potential benefits for charges, governance, services and investment approaches, and said schemes lacking scale in areas such as data use, member communications or investment transparency should consider whether consolidation is in members’ best interests. TPR said it will continue to work with the Department for Work and Pensions and the Financial Conduct Authority on frameworks to support innovation and help savers navigate complex retirement choices, including the FCA’s work on the boundary between advice and guidance and targeted support, and DWP proposals for a Guided Retirement duty. It also indicated it will launch an innovation design service next month to support early-stage ideas, with an innovation support service planned for the summer.

Original source View in tracker