Regulators launch consultation on consumer pension journey

The FCA and TPR launched a joint regulatory strategy for delivering better outcomes for pension savers

Regulators have launched a consultation asking the pensions industry how consumers make decisions about their pension throughout their working lives.

The call for input follows work the Pensions Regulator (TPR) and the Financial Conduct Authority (FCA) did in October 2018.

They launched a joint regulatory strategy to direct action that would deliver better outcomes for pension savers.

It looked to address one overarching harm: people not having adequate income, or the level of income they expected, in retirement.

In a joint statement today both regulators said the launch of auto-enrolment in 2012 has triggered a seismic shift in the pensions landscape.

There are 15 times as many savers in accumulation within defined contribution schemes than in accumulation within defined benefit schemes. This shift means savers carry more of the risk in planning for their retirement and have more decisions to make than ever before.

The consultation wants to prompt a broad discussion with industry and gain insights that will help shape future targeted regulatory interventions.

TPR interim director of strategy Richard Edes said: The past decade has seen a pensions revolution with many more savers now putting something away for retirement. But decisions made by savers, some that they aren’t even aware of, can have a significant impact on the kind of retirement outcomes they can expect.

That’s why we want views on how we can improve the pensions consumer journey, putting savers at the heart of all that we do and supporting them now and in the future, he said.

FCA executive director of consumers and competition Sheldon Mills said: Auto-enrolment and pension freedoms have changed the pensions landscape. Individual consumers now have more responsibility than ever before for making decisions about their pension savings.

Mills said it is important our regulation keeps up with what is happening in reality. We want to hear about what is working well and where the consumer journey can be improved.