The Pension Regulator, which oversees work-based pension schemes throughout the UK, has published standards which Defined Contribution (DC) pension schemes should meet, in a bid to help individuals receive better outcomes from their retirement savings.
Following government pension reforms, which started being rolled out to large firms last year, it is believed that up to eight million people will either be saving more or saving for the first time in a Defined Contribution scheme, and as such, the Pensions Regulator has introduced six principles for good design and governance of such schemes.
The standards, which were announced this week and are open for consultation until the end of March, include a comply or explain regime which occupational DC trust-based pension schemes will be expected to adopt.
Following the publication of the standards, the Chief Executive for the Pension Regulator, said: “We expect all DC schemes to demonstrate how they will comply with our principles for good DC schemes and this will give employers reassurance about their choice of scheme.
“Members bear risks where DC schemes perform poorly. Many members will not have any experience of DC pension saving, so it’s vital that schemes are run by capable people who act in members’ interests – from enrolment to retirement.”
Employers and employees who are concerned about the changes being introduced to pensions by the government, or those who want to discuss the best pension scheme for their individual needs, should come and speak to our team at Milsted Langdon.
Myself and the team at Milsted Langdon will offer honest, tailored financial planning advice, which is designed to help you get the most out of your finances both now and in the future; so if you’re confused about pensions or worried about your finances come retirement, come and speak to us.
Milsted Langdon Director, Peter Groves, specialises in strategic business and tax planning, services for high net worth individuals and professionals.