Pensions strategy must put adequacy at the heart of retirement outcomes for consumers, TISA urges
The Investing and Saving Alliance has today urged The Pensions Regulator to strengthen its Corporate Strategy by making pensions adequacy for consumers more central to its long-term ambition.
In its response to TPR’s consultation, TISA also welcomed the regulator’s system-wide approach but called for closer collaboration between TPR, the FCA, DWP, HMRC, HMT and wider government to ensure major reforms are properly sequenced, tactical regulatory change is minimised, and the existing pipeline of pensions policy delivers on its potential.
Renny Biggins, Head of Policy: Products & Long-Term Savings, commented:
“While we welcome the TPR’s system-wide view to encourage sustainable outcomes, its strategy should be bolder in its ambition. The ultimate aim must be a pensions system which delivers adequate retirement outcomes for consumers, supported by robust defaults, increased opportunity for informed choice and flexibility.
The next five years could reshape defined contribution pensions for a generation. Consolidation, scale, technology, digitalisation and AI can all improve saver outcomes, but only if government and regulators act in a joined-up way.
With the industry already facing significant change, TPR, the FCA and government should focus on clear priorities: addressing chronic undersaving, improving sequencing, and reducing unnecessary regulatory churn, so firms can focus on helping savers engage, contribute more where appropriate, and consumers can make educated and beneficial decisions for their retirement.”
TISA recommends that TPR:
- Makes adequacy central to its pensions vision.
- Improves coordination between TPR, FCA, DWP, HMRC, HMT and wider government.
- Addresses undersaving by supporting more targeted employer engagement.
- Reduces inconsistency between trust-based and contract-based pension journeys.
- Minimises regulatory churn and unnecessary administrative cost.
ENDS.
Notes to Editors
- A full copy of the consultation response is available on request.
- TISA is a not-for-profit membership organisation committed to improving the financial wellbeing of all UK consumers by working collectively with the financial services industry to deliver solutions and champion innovation, for the benefit of people, our industry, and the nation.
- TISA has approximately 260 member firms involved in the supply and distribution of savings and investment products and associated services. Members include the UK’s major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, FinTechs, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.