The Pensions Regulator published findings from its latest defined contribution (DC) survey showing schemes are starting to enhance at-retirement and decumulation options in preparation for the proposed guided retirement duty in the Pension Schemes Bill. Master trusts are furthest advanced, and their scale means 91% of members, around 27 million savers, are now in schemes reviewing their decumulation offering. All master trusts surveyed offer decumulation benefit options at retirement, but 73% of DC schemes overall offer no benefit options at retirement and only 27% offer decumulation options, mainly through partnerships rather than in-scheme provision. Support for retirement decisions is widespread among larger schemes, with every master trust and 98% of large and medium schemes providing support, but nearly a third of small schemes and 40% of micro schemes offering no support beyond statutory communications. Awareness of the proposed duty was 26% overall, and 51% of schemes that were aware had started reviewing their decumulation offering, which equates to 8% of all schemes. Consolidation activity was concentrated among larger schemes, with 44% of medium and 35% of large schemes having started transferring members into a master trust or planning to do so, compared with 12% of small and 4% of micro schemes. The regulator said it is working with government and industry as the duty takes shape and highlighted its new TPR Innovation Support service for schemes seeking to develop new retirement products.

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