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UK Regulators Unveil Pension Value-for-Money Plan With Traffic-Light Scores and 10-Year Projections

A joint FCATPR consultation pairs a four-colour value score with 10‑year projections to guide savers, with responses due by March 8.

Overview

  • Defined contribution schemes would be required to publish clear data on performance, charges and service quality under the proposals.
  • A new four‑colour rating — red, amber, light green and dark green — would signal value, replacing the current three‑colour approach.
  • Schemes judged poor value would have to improve or move savers to better performers, a step expected to drive consolidation.
  • Forward‑looking 10‑year return projections could be used alongside historical results, with the FCA acknowledging risks of unrealistic assumptions and potential gaming and seeking safeguards.
  • The framework targets roughly 16 million DC members, with consultation open until March 8, 2026 and final rules contingent on feedback and the Pension Schemes Bill becoming law.