People’s Pension launches new regular planning tool for members

Part of ongoing enhancements to help members make confident retirement choices

The UK’s largest commercial master trust¹, People’s Pension², has launched a new regular income planning tool to support its in-scheme drawdown proposition. 
 
With more People’s Pension savers approaching retirement³ and an increasing need to provide greater support for people in retirement, the launch is the latest in a series of planned proposition enhancements designed to help its seven million members manage their pension savings more sustainably in retirement. The feature is another step towards a fully guided retirement experience, which the provider is developing in response to the evolving needs of its members.  

From today, eligible members who want to set up a regular income can use the planning tool to understand what level of income their savings can support. The new tool, integrated into members’ online accounts, allows them to choose either an income value or a target duration for their income, with projections based on modelling from Hymans Robertson. 

Through a new nine step and 15-minute end to end intuitive journey, members can understand, plan, consolidate and set up their regular income. They can choose to have their income adjusted for inflation, with annual reviews against CPI helping their payments keep pace with rising costs. To promote sustainable withdrawals, the tool will show an updated view of how long income is expected to last each time a user logs into their online account and will issue alerts as pots diminish.

It remains available for members to revisit and adjust as their circumstances change. In addition, eligible members will be able to seek help over the telephone from the People’s Pension team as part of its new retirement guidance service. 

Kirsty Ross, Proposition Director at People’s Partnership, provider of People’s Pension, said:

“As more savers move from building up their pensions to drawing them down, they need tools that make the transition easier. Our new tool supports members in that that shift, offering flexibility backed by clear information and modelling.

“Retirement isn’t a single moment – it’s a series of choices that evolve over time. We’ve designed this tool to help members manage those choices with confidence, giving them a clear view of how long their income could last and the flexibility to adjust as their circumstances change. This latest development is about giving members practical support that fits the way real retirements unfold.”

Stuart Reid, Distribution Director, said:

“Our employer customers are increasingly aware of the duty of care they have; to support staff beyond the workplace and into retirement. Financial wellbeing doesn’t stop at the point of leaving work, and helping employees make confident, sustainable decisions about their pension income is an essential part of that responsibility.

“What we have announced today helps employers feel confident that their employees are better prepared for life after work. It’s another step in strengthening the link between good workplace benefits provision and long-term financial security.”

Paul Waters, Partner, Head of DC Markets, Hymans Robertson, said:

“As the DC-only generation come to take their pension in ever greater numbers, there is a clear need for comprehensive support and guidance from providers.  Financial advice will not be practical for some. However, with the right guidance and tooling, as the People’s Pension are delivering here, it can make a daunting moment far easier and help members maximise their income while spending sustainably.

“We are pleased to be supporting People’s Pension via our Guided Outcomes® APIs to deliver a better retirement for their seven million members.”

The tool complements a wider set of resources designed by People’s Pension to help members make informed choices about their retirement savings, including the Pension Consolidation Calculator and Pension Finder service.