The Pensions Regulator (TPR) has set out its direction for the next five years, supporting implementation of the UK government’s pension reform agenda.
The regulator has highlighted that while automatic enrolment has transformed retirement saving in the UK, with 23 million people now saving into a workplace pension, 15 million working-age people are still undersaving for retirement.
For this reason, TPR said its new corporate strategy is centred around sustainable income in retirement, supported by a pensions system that provides security and value for all.
To achieve this vision, TPR said it will focus on delivering impact for members across three areas. This includes raising the quality of scheme governance and administration across schemes, including through the implementation of a new ‘common supervisory framework’ and risk assessment model to inform how TPR directs its regulatory efforts for impact and efficiency.
TPR will also enhance the value for money that people experience throughout their pensions journey.
Key activities include supporting the Department for Work and Pensions (DWP) in drafting the Value for Money framework regulations, collaborating with the Financial Conduct Authority (FCA) to ensure regulatory alignment.
In addition, the regulator said it will publish guidance on the extraction of defined benefit (DB) surplus, while protecting member security and scheme sustainability.
The regulator will also ensure members are confident entering retirement and can transition smoothly into products that provide a sustainable income in later life.
TPR will work with DWP on the development of the regulatory framework for guided retirement, working with both DWP and FCA to ensure alignment of member experience between trust- and contract-based schemes. The regulator also committed to delivering a fully operational framework for connected and unconnected multi-employer collective defined contribution (CDC) pension funds.
TPR has also published a new roadmap helping schemes navigate the coming years against the backdrop of the Pension Schemes Act reshaping the market, outlining when the industry will need to engage, comply and deliver for members.
DC Roadmap
| Year | Key developments |
|---|---|
|
2026 |
• Value for Money: TPR and FCA consultation; DWP regulations and FCA rules consultation; TPR guidance • Guided retirement: DWP and FCA discussion paper consultation • Small pots: DWP consultation on Tranche 1 consolidation reforms • CDC: Multi-employer CDC regulations and code come into force; applications open |
|
2027 |
• Value for Money: TPR code consultation; DWP regulations come into force; FCA policy statement • Guided retirement: Draft DWP regulations and FCA rules consultation • Small pots: Second Tranche 1 consultation and response; TPR code and FCA rules consultation; Tranche 2 consultation • DC scheme scale: Consolidation impact report; DWP consultation • CDC: First multi-employer CDC authorisations; consultation on retirement-only CDC regulations and code |
|
2028 |
• Value for Money: Final TPR code published; first data submissions; first assessments and publication of data • Guided retirement: TPR guidance consultation; DWP regulations come into force; FCA policy statement; FRC decumulation standards; final TPR guidance • Small pots: Tranche 1 regulations come into force; FCA policy statements; final code published; authorisation process begins; further Tranche 2 consultation • DC scheme scale: TPR code and guidance consultation • CDC: Retirement-only CDC regulations and code come into force; applications open |
|
2029 |
• Guided retirement: Duties take effect for master trusts and GPPs • Small pots: Tranche 2 regulations come into force; consolidators authorised • DC scheme scale: DWP regulations come into force; final TPR guidance published and code takes effect • CDC: First retirement-only CDC authorisations issued |
|
2030 |
• Guided retirement: Duties take effect for other DC schemes, including single-employer trusts • Small pots: Small pots duties take effect • DC scheme scale: Scale-threshold and transition-pathway duties commence |
|
2035 |
• DC scheme scale: Transition pathway deadline for schemes with assets below £25bn and GPPs |
DB Roadmap
| Year | Key developments |
|---|---|
|
2026 |
• DB surplus: DWP regulations and FCA rules consultation; TPR guidance consultation • LGPS: Investment management and governance duties take effect; DWP final guidance published; DWP regulations come into force; first Independent Governance Reviews (IGRs) expected |
|
2027 |
• DB surplus: DWP regulations come into force; final TPR guidance published; surplus duties take effect • Superfunds: DWP regulations consultation |
|
2028 |
• Superfunds: TPR code consultation; DWP regulations come into force; final TPR code published; TPR opens to superfund applications |
Emma Douglas, chair of TPR, said: “We are moving towards a system of fewer, larger, well-run schemes, able to invest in diverse assets in the interests of members, and potentially the UK economy.
“As the market consolidates and evolves, our role is not simply to respond to change but to actively shape it. We will set clear direction, working closely with the FCA, DWP and industry partners, use our regulatory powers with intent, and influence how the market develops so that scale and innovation are harnessed in service of better member outcomes.”
Nausicaa Delfas, chief executive officer of TPR, added: “Our full focus is on ensuring that people receive what matters most: a sustainable income in retirement. Our new strategy and plan set out our blueprint to protect, enhance and support innovation and growth across the whole pensions journey, from saving through to retirement.
“This marks a significant departure from TPR’s previous strategy, which centred on the accumulation phase, and is the latest demonstration of our move towards system-wide and outcome-focused regulation.”
