Default retirement, the beginning not the end
The Pension Schemes Act 2026 introduces ‘default’ pensions under a new guided retirement duty. We discuss how these changes are reshaping retirement expectations.
Retirement is no longer a simple endpoint. For many people, it is a series of important decisions made at a time when they may feel under-informed, under-confident and under-supported. As retirement needs become more complex and regulation evolves, pension schemes need to move beyond a passive, hands-off model and provide more structured support for members.
This paper explores how the Pension Schemes Act 2026 is reshaping expectations through a guided retirement duty, and what that means for schemes designing retirement support. It highlights the need for default retirement solutions that are sustainable, practical and built around real member needs.
Our proposed approach reflects the feedback we have heard from members: people do not want to feel locked in, and they do not want to make a decision they cannot undo. That is why we believe retirement support should start with a workable default, while keeping the door open to a secure income later on.
The paper also explores the importance of using member data, aligning investment and administration strategies, and creating retirement pathways that are simple to understand and easy to act on. In our view, a default should be the start of a better retirement journey, not the end of the conversation.
Key takeaways
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Retirement decisions are becoming more complex and require better support
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The Pension Schemes Act 2026 increases expectations for guided retirement solutions
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Member feedback shows flexibility and the ability to change course really matter
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Data, planning tools and integrated services can help improve member outcomes
