The Pensions Regulator and the Financial Conduct Authority have today published a joint call for input in a bid to obtain feedback on which areas they should act together.
The organisations stated last month that they were setting out their plans to work in conjunction over the next five to ten years, with an aim to address the risks facing the pensions sector.
Released today, the call for input sets out to gather further information on the risks within the pensions sector – both current and possible – as well as the measures which could mitigate them.
Within the document, the most significant potential harm is cited as a lack of adequate saver income, whether this is at present or anticipated.
This issue, according to the regulators, is affected by a number of factors which they cannot address alone. These include the level of real interest rates and retirement savings for example.
As part of developing their strategic approach, the regulators have highlighted a number of areas in which they work together.
The ones they have proposed are as follows:
- Getting savings off to a good start: access to pensions
- making sure pensions are well run and funded: effective governance and secure funding
- making sure pension savings are safe
- making sure pensions offer good value for money
- supporting good choices and outcomes for consumers and members
As well as asking for feedback on the areas identified, the document states: “Our strategies need to recognise that there are a number of factors that fall outside of our respective remits. We must be alert to these factors as they can create risks, and affect how much money people have to live on in retirement, for example, the macro-economic environment and other factors affecting investment performance. Where possible, we will identify where we can work with others to mitigate these risks.”
The document can be accessed here.
