In our recent response to the Treasury and DWP Consultation: Pensions Investment Review: Unlocking the UK pensions market for growth we emphasised the need for clarity in the proposals to reform the Defined Contribution (DC) pensions market.
The reforms appear to conflate two very different consolidation models:
- Mandated consolidation: A regulatory driven approach that could stifle competition, limit choice, and create an oligopoly dominated by a few largely homogenous providers while essentially invalidating the need for the Value for Money (VfM) framework
- Value-driven, organic consolidation: A market-led approach that prioritises member outcomes, encourages innovation, and fosters long-term trust in the system.
Altus Consulting believe the second model, focused on value and competition, is better for members and the market’s sustainability. Greater clarity on the goals and mechanisms of these reforms is critical to ensuring they achieve their intended outcomes.
Click the button below to read our full response.
