Regulator chief executive’s speech on accessing DC pensions

On November 1, 2023, at the launch of a new PPI report, the Regulator published a speech in which Nausicaa Delfas reported on lessons the UK can take from other countries’ approach to DC decumulation.

The Regulator set out five key principles to help shape the future of decumulation:

• All savers deserve value for money: Schemes help savers to maximise the value of their pension savings into and throughout retirement.
• All savers should be helped with decision-making: Savers are encouraged and supported to make key decisions in the years ahead and in preparation for decumulation.
• Schemes should put the saver at the heart of decumulation: Schemes proactively help DC savers to mitigate the risks they face.
• The market must innovate to provide genuine choice for savers: Savers are given a choice on how to decumulate their pension savings considering their personal circumstances.
• Savers should be supported: All savers should be offered wraparound and personalised support in the lead-up to, and during, decumulation and in post-retirement.

The Regulator is expected to publish interim decumulation guidance in 2024 following a series of planned round-tables, with fuller guidance being provided in time.