Pensions Bulletin 2026/40
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This edition: TPR sets out expectations for a new era of DC pensions.
TPR sets out expectations for a new era of DC pensions
In a speech at a recent conference, The Pensions Regulator (TPR) Chair, Emma Douglas, set out her expectations for the next phase of workplace DC pensions, with a focus on value for money, better-designed defaults and consolidation.
Ms Douglas described the UK pensions system as “unfinished business”, noting that 43% of working-age people are not currently on track for a secure retirement.
On the subject of value for money, Ms Douglas noted that TPR wants the forthcoming framework to shift attention away from small differences in charges towards differences in overall outcomes, with greater emphasis on forward-looking measures. TPR and the FCA will expect trustees and independent governance committees to assess their own value for money, with TPR checking those assessments and consulting on a supporting code of practice.
On default pensions, TPR believes most members will continue to follow the path set for them rather than make active choices. TPR therefore expects trustees to consider members’ wider circumstances – including housing, health, family circumstances and other wealth – when designing appropriate defaults.
And regarding the future and consolidation, TPR expects a DC market dominated by fewer, larger schemes and pointed to the increasing role of master trusts, and the anticipated emergence of “megafunds” with the scale and governance capability to access a broader range of investments. TPR also expects larger schemes to be better positioned to invest in productive assets and support UK growth where this is in members’ interests.
Comment
The message from TPR is that the next phase of DC regulation will be increasingly focused on outcomes rather than inputs. Trustees should expect greater attention about whether their scheme delivers value after fees, whether defaults genuinely support members through retirement, and whether their governance and scale are sufficient to deliver good outcomes.
None of this should come as much of a surprise to anybody who has been following TPR’s speeches and announcements in recent years but it does demonstrate that the regulatory pressure is set to continue.
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