New Traffic Light Rating System Proposed for UK Workplace Pensions

The initiative aims to enhance transparency and value, benefiting millions of savers without requiring their direct action.

The proposed system will publicly rate pension schemes as red, amber, or green based on value metrics.
Poorly-performing schemes will need to improve or transfer savers to better options.
The framework focuses on long-term value, including investment performance and service quality, not just costs.
The Financial Conduct Authority, Department for Work and Pensions, and Pensions Regulator are behind the initiative.
Feedback on the proposal is being sought until October 17.