On 29 April 2026, the Pension Schemes Bill became law.

Those working in the pension sector largely welcomed the news. Chief Executive of Pensions UK, Julian Mund, was quick to voice his support, declaring it “a victory” for pension savers.
 
We also believe that the reforms will “improve the value savers get from pensions and make the system easier to navigate.” [1]
 
Here are three noteworthy changes.

1. “Value for money marks a shift away from judging workplace pensions on headline charges,” says Joe Canavan, Corporate Financial Planner

The value for money (VFM) framework encourages a holistic view of value and aims to improve outcomes for pension savers. 

Shifting away from judging workplace pensions purely on headline charges, schemes will increasingly be assessed on overall value, with providers benchmarked against peers using a standardised and visible framework.

In reality, this merely formalises much of what we already do for our corporate clients.
 
Colour-coded ratings will make it easier to spot poor-performing schemes

The FCA is working with TPR (The Pensions Regulator) to form a single VFM framework across both contract  and trust based schemes. With emphasis firmly on member outcomes, cost will become one component rather than the deciding factor.

Value will be assessed across: 

•    Costs
•    Fund performance 
•    Customer service.
 
The outcome will be shown with a colour-coded VFM rating, making it much easier to spot schemes that are lagging the market. 

Schemes at the bottom end of the scale will be expected to act – by notifying employers and regulators, setting out an improvement plan, or moving members to a better value arrangement.

Simply having made a good selection historically won’t be enough; regular, evidence-based VFM assessments will become part of demonstrating good governance. 

Further consultation is underway, with the first VFM assessments expected from 2028.
 
2. “When is a small pension pot not ‘small’?” Robert Smith, Senior Corporate Benefits Consultant, has the answer

When it’s £1,000 or more. This is the limit for the automatic movement of accrued funds into a yet-to-be-determined “default consolidator scheme”.

When several providers have proved their value, have large investment funds that are agreed to be good value – and the rule has been communicated – pension funds will be automatically moved if they have:

• Not been added to in 12 months
• Less than £1,000 in them.

If the success of automatic enrolment has taught us anything it’s that apathy reigns so an automated process of moving assets without the need for the member’s consent, decisions or action is sensible. Titan feels this is an appropriate way of managing the problem.

Creating an individual pot each time someone starts at a new firm has led to roughly £240 million being wasted each year. [2]
  
Additionally, small pots languishing with potentially eroding charges aren’t likely to lead to the best member outcomes. Moving funds to a low-cost, well-managed scheme without erosive charges is clearly better.
 
While this scheme isn’t “pot follows member” as originally proposed, when coupled with the new dashboard showing members where their money is, it’s not a bad thing.
 
It’s also not going to happen immediately:

• 2027/28 will see the details thrashed out
• 2028/29 providers will tender and be selected
• 2030 is the first point at which any small pots will actually move.

Until and beyond then, we urge engagement, even where members have only small amounts saved.

3. “Guided pathways are becoming an increasingly important feature of workplace pensions.” Senior Corporate Benefits Consultant James Reid explains how Titan can help

Guided pathways help move members from passive saving into more informed, confident decision-making as they approach retirement. 

The Titan Corporate Benefits team can help by:

• Segmenting members by life stage, wealth and their current investment directions, giving them personalised guidance and access to tailored advice, and
• Working with the employer to agree the most suitable default route which reflects typical retirement behaviours whilst ensuring it, and alternatives, are clearly communicated in a timely, accessible, and relevant way

Alongside this, we can deliver targeted communication and education, using behavioural nudges and accessible tools to improve understanding and engagement, while ensuring appropriate governance and compliance boundaries.
 
Crucially, we also provide a seamless link to FCA regulated financial planners where more personalised support is needed, creating a joined-up journey from saving through to retirement and beyond.

Get in touch

To find out how we can support you in ensuring your workplace pension supports stronger member outcomes and help your firm demonstrate real value from your employee benefits, please email info.wp@titanwh.com or call us on 0800 048 0150.

Please note
This article is for information purposes only and does not constitute personal financial advice. If you are unsure about whether a particular course of action is suitable for you, we recommend that you seek independent financial advice.

The value of investments and the income from them can fall as well as rise, and you may get back less than you originally invested. Past performance is not a reliable indicator of future performance. Tax treatment depends on individual circumstances and may be subject to change in the future. Tax and estate planning outcomes are not guaranteed.

Titan Wealth Planning Ltd is authorised and regulated by the Financial Conduct Authority (FCA reference number: 574458). Registered address: 101 Wigmore Street, London, W1U 1QU, United Kingdom.