Pensions - Articles - New data shows shift from savings system to pensions system

Millions of DC savers now have access to in-scheme retirement options, signalling a shift from a savings system to a pension system, new data from The Pensions Regulator (TPR) reveals.

In advance of the introduction of guided retirement duty in the Pension Schemes Bill, TPR’s analysis of the occupational DC market published today, Thursday 5 March, reveals larger schemes are leading the way in supporting members when they come to retire.

The shift towards drawdown being offered in-scheme is largely driven by the growth of master trusts, which have the scale and governance to make it a reality.

Joey Patel, TPR Director of Policy said: “These findings herald a transformation in the DC workplace pensions landscape ahead of guided retirement duty, with millions of savers now able to access in-scheme retirement options. This is just the start, however. Too many members in smaller schemes are left without support when they reach retirement. This is not good enough. We urge trustees to start getting ready for the Pensions Schemes Bill by reviewing their offer and starting to design their decumulation products. If you are not able to guide savers into the right retirement options for them, our message is clear: you should consider consolidation into a scheme that can offer value for money solutions."

As the guided retirement duty takes shape under the Pension Schemes Bill, TPR is working with government and industry to ensure trustees have the clarity and support they need.