08 August 2024
If you are covering the FCA’s release about the progression of its new framework for driving long-term value for workplace pension savers, please see the following comment from Jon Greer, head of retirement policy at Quilter:
"As of yet, the new Labour government has not departed wildly from the pension policies of its predecessor with a continuation of the joint framework by the FCA, DWP, and TPR. This initiative aims to close poorly run schemes, consolidating pension saving, which could potentially improve the overall outcome for pension scheme members. However, the actual impact of these changes remains unlikely to move the dial a tremendous amount in the short term.
"Currently, the majority of pension savers are already enrolled in large, well-managed master trusts or contract-based workplace schemes that have significant oversight and stringent charge requirements. These schemes are already subject to rigorous standards and transparency through existing governance requirements. Therefore, while the new framework might lead to further consolidation of smaller schemes, it is unlikely to result in a significant step change for the industry as a whole in the short term.
"The lengthy process to reach this point underscores the challenges in achieving consensus on metrics. While it is difficult to argue against the principles of this initiative, its success will ultimately depend on the outcomes it delivers. The true measure of its effectiveness will be whether pension schemes can meet these outcome-based standards and genuinely improve the retirement savings of millions.
"While the framework is a positive step towards improving pension schemes, it is only one part of a broader effort. The focus should remain on the outcomes, ensuring that pension savers receive the best possible returns and services for their retirement."
