Asset managers and the investment industry must play their part in the ‘pensions revolution’ and bring forward new funds and investment products which deliver long-term value, The Pensions Regulator (TPR) said today.
In a speech, TPR CEO Nausicaa Delfas challenged investment managers to innovate and help scheme trustees diversify their investments to deliver better outcomes for savers.
Addressing delegates at the annual conference of the Investment Association, Ms Delfas said: “We all have a chance to shape the changing landscape so that in 10, 20, 30 years’ time – people who are working hard and saving today can have a comfortable retirement. So I ask this question…what are you doing to play your part in the pensions revolution?”
Delivering long-term value for pension savers
Her comments come as the pensions market undergoes rapid change, moving towards fewer, larger pension schemes delivering real value for money for savers.
Across 2023-24 the defined contribution (DC) pension system saw the:
- number of memberships grow to more than 30 million – up 6% annually
- volume of assets under management grow by 25%
- number of schemes reduce by 15% as smaller schemes exited the market
At the same time, the number of long term asset funds (LTAFs) has increased from one in 2023 to eight umbrella funds and 23 sub-funds in 2025 as schemes seek more diversified investment opportunities.
In response, the regulator’s CEO described this as a “pivotal time” for the industry as savings schemes transform into holistic pensions systems, thanks in part to the Pension Schemes Bill. As the system evolves, she stressed that pension trusteeship needs to come into line with other professions and corporate governance standards, and noted TPR will be launching a new strategy to guide trustees as they navigate this new world of mega funds and superfunds.
Ms Delfas also highlighted the importance of the forthcoming value for money framework, saying: “This will allow extra scrutiny of schemes and drive positive, long-term outcomes for savers.”
But as part of this long-term focus on value, Ms Delfas called on investment managers to play their part in the new saving landscape and provide trustees with genuine choice in investment products so they can make good long-term decisions. She said: “Are you being supportive enough of long-term assets? The FCA has authorised LTAFs to provide DC schemes with access to illiquid assets – could they be integrated into default strategies?
“Could you be designing multi-asset solutions that are optimised for decumulation? Many DC pots lie in default funds that simply aren’t working hard enough – can you be more dynamic? More personalised in your approach?
“It is incumbent on all of us to ensure that pots grow, and people are protected in their older years.”
Notes to editors
- Excluding micro and hybrid schemes, assets in DC schemes have grown by 25%, from £164 billion in 2023 to £205 billion in 2024, while the number of members increased by 6%, from 28.8 million members in 2023 to 30.6 million members in 2024. The number of non-micro DC and hybrid schemes decreased by 15% over the last year, from 1,080 schemes in 2023 to 920 schemes in 2024, compared to an 11% decrease the previous year. Master trusts continue to provide for the majority of DC members. Master trusts hold 28.0 million memberships (91% of non-micro DC and hybrid schemes) and £166 billion in assets (81% of DC schemes assets). (Figures from TPR’s occupational defined contribution landscape in the UK 2024 report.)
- LTAF figures from LTAF - Fund Search - FCA Register.
- FCA authorised the first LTAF in 2023: FCA authorises first Long Term Asset Fund.
- TPR welcomed the Pension Schemes Bill as transformative for savers through scale and value.
- TPR has issued Private Market guidance for trustees of occupational pension schemes who are considering investing in private markets.
- Nausicaa announced plans for TPR’s trusteeship strategy at a recent speech to the PMI.
- The Pensions Regulator is the regulator of work-based pension schemes in the UK. Our statutory objectives are to:
- protect members’ benefits
- reduce the risk of calls on the Pension Protection Fund
- promote, and improve understanding of, the good administration of work-based pension schemes
- maximise employer compliance with automatic enrolment duties
- minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only
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