Pensions industry should drive innovation in the interests of savers – TPR boss

A lack of innovation and fluidity in the market is leading to investment risks, according to the Pensions Regulator’s CEO Nausicaa Delfas.

The pensions industry should support innovation in the interests of delivering value for savers, Nausicaa Delfas, the newly-appointed CEO of the Pensions Regulator, has said (Gareth Fuller/PA) (PA Archive)

The pensions industry should support innovation in the interests of delivering value for savers, the newly-appointed CEO of the Pensions Regulator (TPR), has said.

Giving a speech on delivering value for savers at Professional Pensions Live on Tuesday, Nausicaa Delfas said: “Today I am making a call for action – we need to work together to make the system the best it can be for savers.

“We need to do this so that pensions deliver a pot that enables savers to have confidence, empowerment and security in later life.

“We need to do this to support savers when they come to use their money. And we need to do this to make the process of decumulation (when pension savings are converted into a retirement income) clearer and more accessible, and to ensure we protect savers from scams, poor advice, and lost value.”

TPR is the UK regulator of workplace pension schemes.

Our work to deliver value for money should be a game changer

Nausicaa Delfas, the Pensions Regulator

Ms Delfas said there is a “lack of innovation and fluidity in the market”, which is leading to investment risks.

She said: “We want industry to change its mindset. From prioritising low costs to putting value first. And by doing so to drive innovation in the interests of savers.”

She focused on an initiative being developed by the Department for Work and Pensions, Financial Conduct Authority and TPR.

She told delegates: “This framework will increase transparency and competition in the market and drive up standards across the board.

“Properly instituted and given its rightful place at the centre of thinking, our work to deliver value for money should be a game changer.

“We need to make genuine changes to the system, not merely adjust some minor points. We need fundamental shifts in thinking and delivery.”

Our position is clear: no saver should be in a poorly performing scheme that doesn’t offer value for money

Nausicaa Delfas, the Pensions Regulator

Ms Delfas said TPR would be challenging trustees not prepared to leave the market and put savers into better run schemes if they cannot meet the standards it expects.

She said: “Our position is clear: no saver should be in a poorly performing scheme that doesn’t offer value for money.

“Where we find poor performance, the message is clear: wind up and put your members into a better run scheme. Or we will consider all powers at our disposal.”

Ms Delfas added: “Savers deserve more than minimum standards – we are unapologetic about the standards we expect from trustees – savers would expect the people looking after what is for many their entire retirement savings to be appropriately skilled and qualified.”

Ms Delfas’s appointment at TPR was previously announced in December 2022.