The Financial Conduct Authority (FCA) has published a report outlining its pension priorities for the year ahead, as it looks to keep pace with an evolving market.

It noted that the pensions landscape was undergoing significant transformation, largely driven by government reforms, and the regulator wanted to ensure consumer needs were met and firms were able to grow and innovate.

The FCA’s priorities included ensuring well-run schemes that provided value for money (VFM) to savers.

It expected the proposed VFM Framework and the Pension Schemes Bill to drive positive change, and wanted firms to engage with the development of these reforms and prepare to implement them in a way that best supports savers.

Additionally, the FCA wanted to encourage effective support for consumers, noting that a lack of understanding and engagement among consumers continued to be a challenge within the pensions sector.

The regulator urged firms to help consumers make informed decisions, especially at key stages in the pensions journey.

To this end, the FCA planned to support firms that wanted to provide targeted support and expected other firms to consider how they can better support non-advised consumer understanding and decision making.

The FCA was also prioritising supporting growth and innovation through proportionate regulation.

It wanted firms to be confident in considering opportunities for investment in private assets, where they judge whether there is potential for long-term returns and diversification.

The final priority outlined in the report was modernising pensions and long-term savings.

It highlighted that longstanding issues, such as ageing technology, difficulty contacting consumers, and pensions being locked in older products can prevent firms from serving their customers and fully embracing innovation.

The FCA said it wanted to work with firms and wider stakeholders to resolve these issues, and it was considering how it can modernise its own regulatory framework to help firms support a better consumer journey.

“This report looks to the future of pensions, setting out our priorities to keep pace with a changing market,” said FCA director of cross cutting policy and strategy, Charlotte Clark.

“As government reforms transform the landscape, firms need to put value for money at the heart of their business, modernise where it strengthens long-term outcomes for savers and act now to prepare for what comes next.”

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