TPR focuses on stronger supervision as pension reforms take shape

The Pensions Regulator (TPR) has outlined plans to strengthen supervision and raise governance standards as the pensions sector prepares for significant regulatory change.

In its Annual Report and Accounts 2025/26, the regulator said it is adapting its oversight approach to reflect a pensions market that is becoming increasingly consolidated, with fewer but larger schemes managing growing levels of assets.

Around 22 million people are now saving into workplace pensions, with total assets under management reaching £1.8tn.

The report highlights the regulator’s work alongside government, the Financial Conduct Authority and industry bodies to prepare for the implementation of the Pension Schemes Act 2026.

TPR said it has introduced a more targeted and data-driven approach to supervision, aimed at identifying risks earlier and reducing unnecessary regulatory burdens for well-run schemes.

Kirstin Baker, interim chair of The Pensions Regulator, said: “We are focused on protecting members, strengthening the pensions system and encouraging innovation where it supports better long-term outcomes.

“Our annual report demonstrates how TPR is adapting to a more complex and fast-moving environment – integrating data-driven approaches into our oversight, deepening our scrutiny of governance and investments decisions, and working with government to drive value.”

The regulator reported continued consolidation within the defined contribution market, with the number of schemes falling by 15% during 2025. At the same time, DC assets increased from £205bn to £249bn.