The introduction of guided retirement duties for trustees and the FCA’s new targeted support framework could mark a “turning point” for defined contribution (DC) savers.
This is according to pensions and employee benefits provider Zedra, which said the two initiatives together have the potential to transform how employees transition into retirement.
By making the most of these changes, employers have an opportunity to ensure that more employees benefit from accessible, personalised, and sustainable retirement options. This is a growing priority for HR teams looking to support financial wellbeing across the workforce.
However, this transformation will only happen if pension schemes take a proactive and collaborative approach.
Kim Nash, managing director of Zedra governance, explained: “Too many savers approach retirement with insufficient income and are left to navigate complex decisions on their own.
“Guided retirement, combined with targeted support, presents a real opportunity to change that.
“By creating simple, relatable pathways and offering a safe default where members do not actively choose, trustees and providers can play a vital role in helping savers achieve more secure and sustainable outcomes.”
However, Nash cautioned that the shift will require careful design and collaboration across the pensions ecosystem.
She said the challenge will be to balance choice and protection. “Members have unique needs, but they also need confidence that their scheme will support them if they don’t know what to do. Getting this right will require product innovation and investment design, thoughtful use of data to segment members, and a blend of digital and human support.”
Nash urged pension trustees to view the new duties as an opportunity to rethink the entire retirement experience, not just to meet compliance standards.
She called guided retirement and targeted support “tools to reimagine the retirement journey”, adding that pension trustees, providers, and regulators “must seize this moment to collaborate”.
“Together we can build solutions that meet members’ need for lifelong income and give them the confidence to plan their retirement with clarity.”
