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FCA progresses framework to drive long-term value for workplace pension savers

ended 08. August 2024

The FCA, the Department for Work and Pensions (DWP) and the Pensions Regulator (TPR) aim to implement a joint framework for workplace defined contribution schemes. The joint framework would be used by pension providers and those making decisions on behalf of savers to provide greater transparency over how schemes are performing. Schemes will be compared on public metrics that demonstrate value – not just costs and charges, but also investment performance and service quality. They would, once the final framework is decided, be publicly rated red, amber or green. Full story >> here <<. Any thoughtsm send them across ASAP as this story is BREAKING.

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Joshua Gerstler
Chartered Financial Planner at The Orchard Practice
Anything that helps improve the quality of pensions is a good thing for those saving for retirement. It is very unclear at the moment what they are actually proposing. For example, what is a "scheme"? Is it a pension company? Is it an investment fund? You could have two people invested with the same company e.g. Aviva, but both having very different experiences due to the funds they are invested in. Also, getting the schemes to rate themselves is like marking your own homework. And they do not state what timeframe they are going to be looking at. We all know that investments should be looked at over the long term so there is a danger of short-termism to get a green tick. All in all, this needs a lot more clarity.