Pensions Regulator launches innovation support service

On May 19, 2025, the Regulator launched a new support service which it says will “unlock” pensions industry innovation with the aim of boosting saver outcomes. 

In its press release the Regulator explains that the service aims to reduce “unnecessary regulatory barriers” to pensions innovation by enabling early, transparent discussions with pensions innovators. 

Two areas of particular focus will be administration and member experience (particularly in the decumulation phase). 

The new support service will offer: 

• Discussion sessions: allowing innovators to discuss the early stages of developing a new pensions idea or solution with a pensions expert, and giving the Regulator the chance to consider how it might be regulated.
• Collaborative events: allowing pension innovators to make connections across the industry, so that challenges can be tackled collaboratively.
• Thought leadership: the Regulator has found that blogs, reports and information on good practice in pensions innovation were popular as they explain its stance on areas such as targeted pensions support and guided retirement.
• Cross-government working: to avoid duplication, the Regulator and the Financial Conduct Authority will work closely together to give pensions innovators access to the Authority’s own innovation test service.
• Support for emerging models: while the Regulator already supports new pensions models, such as superfunds, it will streamline the process to support other emerging models.

The Regulator has provided a link for access to the service which includes the various resources and information on upcoming events. 

One of the areas in which the Regulator is particularly keen to encourage innovation is decumulation options. Its Interim Director of Policy and Public Affairs, Patrick Coyne, made a speech at the launch of a report from the Pensions Policy Institute (commissioned by the Regulator) on decumulation and value for money. 

Mr Coyne suggested that savers require "a sat nav for retirement", and the Regulator’s innovation hub aims to facilitate and test a range of services with the market, including those relating to decumulation. 

New decumulation duties on trustees are due to be enacted in the forthcoming Pension Schemes Bill. These are likely to require trustees to provide decumulation services themselves or offer access to such services from other providers.