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Latest news on consolidation
Scale expectations must be grounded in reality, industry says
The government’s aim to create £25bn defined contribution “megafunds” needs more flexibility and to reflect how assets are invested and governed in practice, according to responses to its latest consultation.
Scale test could ‘paralyse’ industry and hamper innovation, government warned
“Waiting until late 2027 for draft regulations leaves the industry in limbo, threatening to stall vital investment and stifle innovation at a time when providers should be preparing for 2030,” says the SPP’s Chris Austin.
DC consolidation: Four providers hold 70% of assets, study finds
As the government pushes forward with its £25bn scale requirement for DC schemes, new research shows that the sector is already dominated by a small number of providers.
Government pushes back VfM, guided retirement deadlines in ‘roadmap’ shift
Pensions minister Torsten Bell has announced changes to the “sequencing” of pension reforms to support the implementation of developments related to Value for Money, guided retirement, and superfunds.
A blueprint for megafunds: How consolidation will shape the future of DC pensions
The drive towards “fewer, larger pension schemes” being driven by the Pension Schemes Act could boost individual pension pots by up to 20% if executed well, according to new research by WPI Economics and Standard Life.
Latest DC opinion
Prospect: Self-employed workers need more help to save for retirement
Steve Thomas, deputy general secretary of the trade union Prospect, says it is not enough just to encourage more saving among self-employed people – they need a sustainable, affordable way to do so.
Are AI tools fuelling an emerging pension complaints risk?
Generative AI can turn member dissatisfaction into a detailed complaint within minutes. Trustees should respond by strengthening the support provided before retirement decisions are made, writes Guiide’s Philip Hodges.
Can the Pensions Commission address systematically unequal outcomes?
The debate over automatic enrolment reform highlights the difficulty of improving retirement outcomes for low earners. As fresh analysis from the Pensions Policy Institute makes clear, even widely supported changes involve trade-offs.
Own Risk Assessment: The starting point for pension board effectiveness
Vidett’s Kelly Newton looks at what the new ORA requirement means for trustee boards, and how to get the most out of the process.
More consolidation news
Torsten Bell on the growth of DC, improving adequacy, and tackling fraud
Addressing delegates at the Pensions Management Institute’s annual conference in London last week, Bell outlined five major trends affecting the pensions sector.
The £25bn question: TPR report casts doubt on benefits of scale
New research from the Pensions Regulator indicates that scaling up defined contribution pension schemes will not bring guaranteed economies of scale.
Regulator gives green light to WTW’s Cushon acquisition
WTW now owns two defined contribution master trusts serving the UK market, with Cushon now sitting alongside its existing LifeSight offering.
Pension Schemes Bill finalised: Industry hails ‘historic moment’ despite spectre of mandation
The Pension Schemes Bill has been finalised after protracted debates between legislators, and will now move to receive Royal Assent. Pensions Expert rounds up some of the industry reaction across the various elements of the new legislation.
Peers urge rethink on scale test to preserve innovation and competition
Members of the House of Lords have warned that the legislation backing the scale test is too restrictive and could stifle innovation among DC providers.
Lords push back on ‘poisonous’ mandation in Pension Schemes Bill debate
In a debate last night (20 April), peers voted to reject the government’s revised wording of the reserve power, despite attempts from Labour representatives to reassure opponents about the measures.
Standard Life buys Aegon in £2bn deal to create retirement savings giant
The combined group will be responsible for approximately £480bn of assets under administration with around 16 million customers, Standard Life announced.
Delaying consolidation could damage compliance and value for members, TPR warns
The number of non-micro DC and hybrid schemes fell by 15% over the past year, dropping from 920 in 2024 to 790 in 2025, recent data from the regulator has shown.
How alts and active management aid Australian pension outperformance
With Australia’s superannuation system repeatedly held up as a model for UK defined contribution pension provision, a new study shows the impact of diversification into private markets and the use of active management models.
TPR steps up DC consolidation drive as master trust domination increases
Trustees of DC pension schemes need to keep their arrangements under review and consider consolidating into larger schemes if they are not delivering value, TPR has said.
Master trusts should prepare now for scale requirements, TPR says
The regulator set out principles to help trustees evaluate whether their schemes are likely to meet the proposed scale thresholds and how they should evidence future growth.
Setting the scale test: How the DWP plans to get DC funds to £25bn
The Department for Work and Pensions has set out how it expects master trusts and other DC providers to hit the £25bn scale requirement set out in the Pension Schemes Bill.