XPS Group has launched a tracker that benchmarks a typical defined contribution (DC) pension pot at retirement against industry living standards.

The ‘DC:UK Savings Watch’ will compare the projected value of a typical DC pension pot at retirement with the Pensions and Lifetime Savings Association (PLSA) and Loughborough University Retirement Living Standards’ three levels: minimum, moderate and comfortable.

XPS said the tracker would be updated daily, providing insight into a typical member and how their projected DC pension pot changes over time based on various factors, including market dynamics and inflation expectations.

The launch follows recent speculation that the government has put the second phase of the pension review on hold, which, according to XPS, could force trustees and employers to “solve the adequacy problem themselves”.

The firm claimed concerns were rising around DC pension adequacy and expectations that fewer members would meet their retirement income goals.

XPS Group head of DC investment, Mark Searle, said it was disappointing that the government was “no longer prioritising” the adequacy problem.

“The second phase of the pension review was a real opportunity to put in place long-term plans to improve retirement prospects for generations to come. It’s disappointing that the government are no longer prioritising the adequacy problem, so the solution necessarily lies with trustees, employers and individuals themselves.

“XPS' DC:UK Savings Watch not only models a typical DC pension pot, but it can also model scheme-specific data to help employers and trustees understand the savings targets their members need for a secure retirement.

"By aligning projected pension pot values with recognised industry living standards, we aim to empower employers and trustees to support their members and provide clearer insights on retirement adequacy.

“We know the importance of planning for a future that aligns with financial goals, so we’re excited to launch XPS DC:UK Savings Watch as a practical way to help employers and trustees identify the gap between retirement aspirations and realities.

"Early intervention through changes to the investment strategy and/or contribution levels can then be discussed to move members to a more secure retirement.”

---