Majority of DC pension savers now offered in-scheme retirement options, finds TPR

Research from The Pensions Regulator (TPR) found millions of defined contribution (DC) pension savers now have access to retirement options within their schemes.

The research found 13.4 million members now have the option of drawdown at retirement, something not previously offered within occupational schemes.

86% of the largest schemes offer at least one retirement income option, compared to just 46% of small schemes.

Two fifths of all schemes offer no decumulation product. 

43% of all members, represented by 16% of schemes, can access drawdown without leaving their scheme. 

Joey Patel, director of policy at TPR, said: “These findings herald a transformation in the DC workplace pensions landscape ahead of guided retirement duty, with millions of savers now able to access in-scheme retirement options. This is just the start, however.

“Too many members in smaller schemes are left without support when they reach retirement. This is not good enough.

“We urge trustees to start getting ready for the Pensions Schemes Bill by reviewing their offer and starting to design their decumulation products.”