Following the publication of the FCA’s Consumer Investments Priorities paper, it has now issued explicitly outlined its current priorities for pensions.

These priority documents are designed to give firms a clearer view of where the FCA is focusing its attention. They also reflect its broader focus on embedding Consumer Duty and delivering good customer outcomes.

Here, we look at what the statement tells us about the FCA’s current concerns and how this may shape engagement with firms in the months ahead.

The FCA’s main objective is supporting effective retirement outcomes while maintaining strong consumer safeguards across the market.

Among the key themes are improving value for money in pension schemes, helping consumers navigate retirement decisions and maintaining effective supervision of firms and products. Together, these reflect a clear focus on whether pension products are delivering value and supporting better outcomes for consumers.

The priorities explained

Improving value for money in pension schemes

One of the FCA’s main areas of focus is whether pension schemes deliver appropriate value for savers.

Improving transparency and making comparisons easier is a key objective, with ongoing scrutiny of how clearly firms communicate charges, performance and overall value.

Consumers should be able to understand the relationship between the costs they pay and the outcomes they receive. This reflects concerns that some savers remain invested in older products with higher charges or weaker performance.

The FCA is working with government and The Pensions Regulator on the development of a value for money framework for defined contribution pensions. This is likely to shape how firms evidence the value they deliver, particularly as expectations become more standardised. The aim is to introduce consistent measures that allow schemes to be assessed on investment performance, costs and service standards.

Supporting consumers approaching retirement

Since the introduction of pension freedoms, individuals have greater choice over how they draw income in retirement. This flexibility can be beneficial but comes with a greater responsibility on the consumer to make more complex decisions about their retirement funds.  Consumers may find it difficult to assess which option best suits their circumstances, increasing the risk of poor outcomes. For firms, this reinforces the importance of how options are presented, not just what is offered.

It also highlights work underway linked to the Advice Guidance Boundary Review, which aims to clarify how firms can provide different forms of help while maintaining appropriate safeguards. Firms with the appropriate permissions are now able to offer targeted support, a less personalised type of support which nevertheless takes individual circumstances into account without crossing into full advice.

It will also continue monitoring retirement income products and pension transfer activity to identify potential risks, highlighting close scrutiny of how these products are used in practice. Against this backdrop, firms are expected to present retirement options in a way that supports informed decision-making, in line with Consumer Duty

Supervision of pension providers and products

Oversight of firms operating in the pensions market is a priority for the FCA. It will continue supervising providers and intermediaries to ensure they meet regulatory standards, with an emphasis on outcomes rather than just process.

Self-invested personal pensions are still a focus. These arrangements can offer flexibility but may also expose consumers to higher risk or unsuitable investments if not properly governed, so firms must be able to evidence robust oversight.

The FCA’s priorities also focus on the importance of effective systems and controls within firms. Strong governance and operational resilience are key.

Preventing pension scams and financial crime

Pension scams still present a significant threat to consumers’ retirement savings. As a result, firms are expected to maintain robust processes to detect and prevent suspicious activity, particularly around transfer checks and identifying warning signs early.

In practice, this means being able to provide evidence that appropriate checks are carried out at the point of transfer, where the risk of fraud is often highest. Alongside this, the FCA is working with organisations such as The Pensions Regulator to reduce the overall risk of scams.

What this means for firms

In explicitly stating its pensions priorities the FCA is emphasising its focus on improving outcomes for savers throughout the retirement journey.

Value for money, consumer understanding and effective supervision remain central concerns and are likely to shape supervisory activity in the near term. Everything is underpinned by the requirements of Consumer Duty This is expected to translate into sustained attention on product design, investment outcomes and governance arrangements.

The regulator reinforces the need for clear explanations, well-governed products and appropriate support as consumers save for and approach retirement. More broadly, it points to a shift towards demonstrating real outcomes, not just meeting regulatory requirements.

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