Topic: Engagement

Pension transfers’ risk increases by half a billion pounds in just 18 months

Projected losses from poorly informed pension transfer decisions have increased by half a billion pounds in just 18 months, according to new analysis from People’s Pension1. 

The UK’s biggest commercial master trust has released the latest edition of its Pension Transfer Outcomes Index2, revealing that pension savers could be losing £1.7bn from their pension pots due to poorly informed transfers made in the year to 30 June 2025 – a 42% increase from the £1.2bn at risk from decisions made in 2023.

The Index, which models the financial impact of transferring pensions into higher-charging schemes, shows that this risk has surged by 120% since 2023. As transfer activity continues to rise, the associated risk is growing at an average rate of 22% per year. Based on current trends, the pension provider now forecasts that uninformed transfers will become a multi-billion-pound problem by 2027 – significantly earlier than its previous estimate of the end of the decade4.

Previous research shows pension savers often make pension transfer decisions without fully grasping the financial consequences5. With many struggling to find the basic information they need to accurately compare schemes, new research from People’s Pension6 has found nearly all pension savers (96%) think pension providers should be required to tell people about the impact of the charges they will pay if they transfer a pension to a new provider.

The research also reveals that half of pension savers (53%) don’t really understand how transfers work and a fifth (20%) think they are a gamble. Pension savers lack confidence to make transfer decisions unsupported, with two thirds (65%) saying they need the help of a professional to consolidate a pension.

People’s Pension continues to call for greater collaboration from the pensions industry to enable people to compare their pensions based on the information that matters most. Its five-point-plan7 includes calls to ban transfer incentives and industry collaboration to create a consumer-facing ‘value for money’ framework, which must be clearly displayed on any future commercial pension dashboards.

Patrick Heath-Lay, CEO, People’s Pension, said:

“It’s alarming to see such a rapid escalation of the pension transfers problem, which is fast becoming a crisis, especially when you consider the significant impact on people’s retirement savings. Savers risk ending up with thousands of pounds less and working for years more. And with massive rises in transfer volumes expected when pensions dashboards come into effect, it is essential that the industry acts now to address this issue.

“Pension savers must be able to easily access and compare all the information they need to make informed, educated transfer decisions. It is therefore vital that simple, easy-to-understand comparisons of value are on commercial pensions dashboards when they launch.

“With the Governments pension review focusing on value only in the workplace pension market and a new commission looking at adequacy of saving, it is appalling to see the amount of value being needlessly lost due to the vulnerability of consumers. More onus must be put on providers to flag to members when they are transferring to higher charging schemes to ensure members understand the long term implications. With so many people under pensioned it is unacceptable for savers to be losing out by making uniformed decisions like this.”

To help pension savers understand the long-term impact of charges and assess the effects of transferring pensions on their retirement savings, it recently launched a Pension Consolidation Calculator8. The tool allows pension savers to compare charges across different pensions, see long-term savings projections and understand how small percentage differences in charges can have a large difference on the value of their pension pot at retirement.

People’s Pension completes pensions dashboards connection

People’s Pension1, the largest commercial master trust in the UK, has today announced its successful direct connection to the pensions dashboards ecosystem. 

The Pensions Dashboards Programme (PDP)2, facilitated by the Money and Pensions Service3 (MaPS), is a UK government initiative aimed at improving planning for retirement and growing financial wellbeing by enabling individuals to easily and securely access all their pension information in one place, including State, workplace, and personal pensions. 

The connection will enable pension data to be available through the Government-backed MoneyHelper4 dashboard and in the future through private sector dashboards. Individuals will be able to see the total value of their pension savings and an estimate of what pension income they might receive at retirement, alongside details of who is managing their pension and where to go to find more information. 

Nigel Rodgers, Chief Information Officer of People’s Partnership, provider of People’s Pension said:

“Connection to the dashboards ecosystem is an important step in modernising pensions technology in the UK, which should help enhance data quality and data management processes across the sector. We’ve been working closely with the Money and Pensions Service to ensure we’re connected as early as possible.” 

Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, provider of People’s Pension added:

“This milestone reflects a major collaborative effort between industry, regulators, and government. We fully support the increased transparency that pensions dashboards will provide UK savers in the future. 

“As dashboards become the main way many people engage with their retirement savings, particularly when making decisions about drawing income, it is vital that pensions dashboards remain tightly regulated.” 

Mark Condron, Chair of The People’s Pension Trustee Limited, said:

“This is a very significant moment for the Scheme, because it is a crucial next step in the evolution of both this master trust and the wider workplace pension industry. It has been great to witness, up close, the teamwork that has gone into making this project a success and is something that will benefit our seven million members.”

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People’s Pension gives £100 million back to its members through its savings reward

People’s Pension1, the UK’s largest commercial master trust, has today revealed that over £100 million has now been given back to its members since 2020 through its groundbreaking savings reward2, as part of its long-term commitment to delivering better retirement outcomes. 

People’s Pension, currently returning over £3 million every month3 to an increasing number of members through its savings reward. The scheme is the only UK workplace pension that applies a best price guarantee on both it’s standard and scheme specific pricing and provides members with a single pension pot, regardless of how many times they are enrolled by different employer

This achievement sets the People’s Pension apart, reinforcing the Scheme’s commitment to delivering long-term value for members. As a not-for-profit organisation, it ensures that members, not shareholders, benefit directly. Over £100 million has already been given back to its seven million members – a powerful example of this purpose-driven approach in action. 

“This is an extremely significant moment – a milestone we are very proud of and a great example of what a pension with purpose looks like. The more the People’s Pension grows, the more we will be able to put back into the pots of our members.”

said Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, provider of People’s Pension.  

“We’re proud to lead by example and show that a better pension experience is possible. Our seven million members are at the heart of everything we do, and our savings reward is just one way we’re helping them build a more secure financial future.” 

Mark Condron, Chair of People’s Pension Board of Trustees, said:

“To give back £100 million to so many of our members in just five years is the embodiment of the People’s Pension’s differences. The savings reward is a perfect example of putting members first and to reach such a milestone, so quickly, is yet another reminder of our rapidly growing scale.” 

For the average member, the impact is significant. A typical saver earning £25,000 per year and contributing 8 per cent of their salary could save over £12,000 in charges over a lifetime5. In real terms, this means more money staying in members’ pension pots, where it belongs, and with the savings reward continuing to grow, members can expect even greater value in the years ahead. 

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Good Things Foundation and People’s Partnership join forces to tackle digital and financial exclusion

Good Things Foundation1, the UK’s leading digital inclusion charity, has joined forces with People’s Partnership, a not-for-profit pension provider serving 7 million members to help low-income and digitally excluded adults build the skills and confidence they need to manage their money online.

People’s Partnership2, which provides the People’s Pension scheme, will support Good Things Foundation’s free online learning platform, Learn My Way, by co-developing a new module. The collaboration also includes a digital journey audit and a series of webinars delivered through the National Digital Inclusion Network.

This announcement marks a significant step for People’s Partnership as it embarks on this new major charity collaboration, bringing its financial expertise into the social sector to reach those often excluded from both digital access and financial planning.

The initiative is timed to support communities ensuring more people can confidently manage their financial future online.

“This partnership is about breaking down the barriers that stop people from confidently engaging with their financial future,”

said Helen Milner OBE, Group Chief Executive of Good Things Foundation.

“By combining our skills in digital inclusion with People’s Partnership’s pensions expertise, we’re empowering low-income and vulnerable adults – many of whom are digitally excluded – to take control of their financial future.”

Nicola Sinclair, Head of Responsible Business of People’s Partnership, said:

“We’re proud to be working with Good Things Foundation on this major charity partnership. As a pension provider with purpose, we’re committed to helping our 7 million members build financial foundations for life, and financial wellbeing forms a central part of this. We passionately believe that everyone deserves access to tools and knowledge to enable them to plan for their future.

“At the heart of both organisations there is a clear commitment to inclusion, and that means making sure no one is left behind in the digital age.”

Leading asset owners collaborate to set climate stewardship expectations

An asset owner coalition, representing cUSD$1.5 trillion (cGBP£1.2 trillion) of their members savings, have co-authored1 and endorsed the Asset Owner Statement2 on Climate Stewardship, a new resource for the sector.  Responding to asset managers’ requests, the statement sets out clear and consistent expectations regarding climate stewardship for them.

In the lead up to 20303, asset managers need to intensify their stewardship efforts to address the fiduciary risk that climate-related impacts present. The statement calls on asset managers to evolve and strengthen their climate stewardship strategies in light of the imperative need for climate action.

The Asset Owner Statement on Climate Stewardship aims to facilitate constructive conversations on climate stewardship and embed greater efficiencies into the stewardship chain, empowering asset manager stewardship teams to deliver on their asset owner climate objectives as part of their mandates. Ultimately, the group seeks to raise the bar on climate-stewardship across the investment sector.

Leanne Clements, Head of Responsible Investment at People’s Partnership, provider of The People’s Pension, stated:

“Now more than ever, by working together asset owners and asset managers can contribute to a more efficient and competitive industry, ultimately benefiting members.”

Developed from the Asset Owner ‘Aligning Expectations roundtable’ the statement seeks to address the main challenge identified in the UK Asset Owner Stewardship Review 20234: an ongoing and material divergence between asset owner expectations and implementation of climate stewardship that limits progress towards a net zero world and better outcomes for beneficiaries.

The statement, signed by 26 investors from the UK, Europe, Australia and the US, makes clear its principle-based expectations5 of asset managers on the crucial issue of climate stewardship, as follows:

  1. Industry/market and public policy engagement should be core to the climate stewardship proposition across asset classes
  2. Where permissible, asset managers should prioritise collaborative initiatives to achieve greater impact and embed efficiencies in engagement activities
  3. Asset managers’ prioritisation framework for company engagement should be rooted in a robust theory of change that delivers maximum impact
  4. A systematic approach to voting is imperative
  5. The stewardship function needs to be appropriately resourced

As owners of capital, the coalition, value their asset managers as their strategic partners in delivering value for their members. Created as a resource to support and empower their asset managers in delivering on their behalf, the statement builds on existing industry guidance. It delves deeply into five key principles and provides a clear indication on the level of scrutiny and detail expected.

Lead of this initiative, Leanne Clements, Head of Responsible Investment for People’s Partnership, provider of The People’s Pension, said:

“We, as asset owners, are the owners of capital and the mandates, and in these challenging times it is now more important than ever as an asset owner community to send a strong collective principle-based signal to our asset managers as to what we expect of them. Time is running out in the lead of up to 2030, asset owners and asset managers must work together in partnership to drive meaningful change: not only in the companies in which we invest, but in the underlying economic, social and environmental systems upon which our members depend”.

Vaishnavi Ravishankar, Head of Stewardship at Brunel Pension Partnership, reinforced the message,

“Our collective statement from asset owners representing cUSD 1.5 trillion of assets under management, responds directly to feedback from our managers to hear from asset owners jointly on climate stewardship expectations and represents an important signal to the market. The statement signposts what we, as representatives of our beneficiaries’ long-term interests, consider important for fund managers to demonstrate. We expect this to be a living document that will evolve through ongoing dialogues with our managers but in the first instance, codifies what we consider as best practice to inform manager selection and monitoring.”

Shipra Gupta, Investment Stewardship Lead at Scottish Widows, said:

“Systemic risks and opportunities, like climate change, require systemic and systematic interventions across the investment value chain. This statement sets out a clear principles-based framework of asset owner expectations of their asset managers encompassing the importance of influencing and shaping policy and regulation, of working in collaboration with stakeholders, of using their shareholder rights and responsibilities more effectively, and all of it being embedded in appropriate sectoral strategies and relevant technical expertise.”

Garnering support for the statement remains ongoing as of the date of this press release.  For further information, or to sign up to the statement please contact assetownerstatement@peoplespartnership.co.uk.

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The People’s Pension unveils personalised video statements to simplify pensions for its members

The People’s Pension1 has launched new personalised video statements to help its members better engage with their retirement savings.

The video statements will be securely delivered by the biggest independent UK master trust directly to members via their online account and will include personalised audio and messages that are specific to the individual account. Within the video statement, the member will see how much they and their employer have added into their pot, any tax relief, and result of investment performance. The statement will also show the member the total amount in their pot.

The new personalised video statements will complement members’ annual statements which they will continue to receive either in the post or digitally.

This is the latest innovation in the last 12 months from the not-for-profit organisation, following the launch of a new set of retirement planning tools, member app and financial well-being offering.

Commenting on the launch of video statements, David Meliveo Chief Commercial Officer of People’s Partnership, provider of The People’s Pension, said:

“We continue to improve what we offer our members and the companies they work for, and I am incredibly excited to announce the launch of personalised video statements. It’s another significant step forward for our aim of making pensions simpler, more accessible, and engaging for our members.

“As a company that manages 1 in 5 of the workforce in the UK, it’s important that we find different ways for our hard-working membership to better engage their pensions, enabling them to make better informed decisions about their future.”

A recent study2 of marketing video statistics has revealed that 91 per cent of people have watched an explainer video to learn more about a product or service, and when asked how they’d like to learn about a product or service, watching a short video was preferable (44 per cent).

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One in five savers have never checked their pensions, research by The People’s Pension reveals

Nearly a fifth of savers (19 per cent) have never reviewed how much is in their pension savings, new research from the leading workplace pension provider People’s Partnership has revealed.

A survey from the provider of The People’s Pension, conducted by YouGov, also found that two in 10 (21 per cent) savers check their pension just once a year while a fifth (19 per cent) check their retirement savings once a month or more often.

The research also found:

  • Nearly a third (32 per cent) of people don’t know how much they have saved in all of their pension pots.
  • Only one in 10 pension savers had an app for their pension, compared to 9 in 10 people (91 per cent) who use one for banking, around six in 10 (58 per cent) who use an app to order food to be delivered and more than four in 10 (43 per cent) who check their investments on an app.
  • More than six in 10 people (64 per cent would check their savings more often if they had a mobile app for their pension.

David Meliveo, Chief Commercial Officer at People’s Partnership, said:

“At a time when most people aren’t saving enough for retirement, it’s worrying that the vast majority of savers have never checked their pensions – leaving them with no idea how much they’ve saved, or maybe even where it’s saved.

“For most people it’s now an everyday habit to use apps for shopping, banking, or even investing, but when so few pension savers check their savings that way, it’s clear that the industry could do much more to engage their members and help them plan for their future. 

“Through initiatives like our new app and retirement planner, we aim to make it easier for workers to keep track of their savings and help them to make the right financial decisions for their future selves.”

The People’s Pension app allows its 6.7 million members to check how much they have in their account, how the scheme is investing their money, and aims to help them plan financially for their future. The app will be regularly updated to include new features, which will soon include the newly launched Member Rewards, which are special offers and deals available only to members of The People’s Pension.

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Nearly one in six retirement savers have never checked their pension savings – survey

Nearly one in six (16 per cent)1 of retirement savers admit that they have never reviewed their pensions, new research from People’s Partnership2 has revealed.

The survey, commissioned by the provider of The People’s Pension, also shows that nearly a quarter (24 per cent) of those questioned review their pension savings less than once every year, while a fifth (20%) check once a year and one in ten (11 per cent) said they check once every six months. The findings follow the publication of Government statistics3 which show that nearly 4 in 10 of working adults are not saving enough for their retirement.

The YouGov poll also shows that nearly half (45 per cent) of those who took part are not confident that they have put enough thought into their retirement plans, while only a quarter (25 per cent) said they were.

The poll also shows that:

  • Men are nearly twice as likely (32 per cent) than women (18 per cent) to have confidence in their preparation for retirement.
  • People living in the East of England and Wales are some of the least confident regions in the UK about their retirement plans.
  • People living in the London were the most confident about their retirement plans.
  • Nine per cent of men surveyed said they reviewed their pensions once a week or more, compared to one per cent of women.

The findings have been published to coincide with Pension Awareness Week4 and People’s Partnership, which provides The People’s Pension to six million UK savers, is promoting four simple steps for people to become more engaged with their pensions:

  • Sign up for an online account with your pension provider.
  • Make sure your personal and contact details are up to date.
  • Read your annual statement, checking the projected savings your current level of contributions will give you.
  • Name the person you want to benefit from your pension in the event of your early death.

Kevin Martin, Group Director of Customer Services at People’s Partnership, provider of The People’s Pension, said: “It’s clear from our research that many workers are ill-prepared for retirement, which is a concern given that we know that millions of workers are not saving  enough.

“There are simple steps that a person can take to ensure that they are better prepared for retirement, including signing up for an online pension account, naming a beneficiary, checking your annual statement and ensuring your details are updated so your provider can stay in touch.

“The findings also show that men have more confidence in their retirement arrangements than women, which is further proof of the gender pension gap which won’t be closed without government intervention.”

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Pension saving continues to remain a top priority despite cost-of-living pressures

New research1 from People’s Partnership2 suggests that the cost-of-living crisis isn’t negatively impacting the UK’s retirement saving habits, with just two per cent of pension savers admitting they have stopped paying into a pension in the last six months.

This is compared to almost four in 10 pension holders (39%) choosing to eat out less, one in five (21%) cutting back on holiday spending, more than four in 10 (44%) buying cheaper brands or ‘own label’ products, and a third (33%) reviewing their direct debits or standing orders.

Despite the current economic climate, the workplace pension provider, which provides The People’s Pension to more than 6 million people across the UK, also found that only 4 per cent of pension holders would consider pausing their retirement saving in the next 12 months, while 4 per cent said they would also think about reducing the amount they pay into their pension in the next year.

Whereas half of those questioned (50%) would buy cheaper brands or own label products, almost half (46%) would go out less often, just under two-fifths (39%) would review their direct debits or standing orders, and more than a third (35%) said they would cut back on holiday spend. Interestingly, seven per cent of respondents claimed they would look to increase their pension contributions in the next 12 months.

Commenting, Phil Brown, director of policy for People’s Partnership, said:

“We cannot underestimate the financial pressures facing people across the UK at the moment, with inflation at a 40-year high. For some, reviewing what they’re paying into their pension will be the right thing. However, with 60 per cent of people across the UK not saving enough to maintain their current standard of living in retirement, it’s really reassuring that despite the current economic climate, pensions remain a priority for people who are looking at other ways to cut back before touching their pension pot.

“It is clear that the record levels of retirement saving, which is in no small part due to the introduction of automatic enrolment 10 years ago, means that pensions are as important as they ever have been to UK workers.”

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Less than half of UK savers care about the charges they pay on their pension – latest research

Fewer than half of UK adults with a pension (48%) say they ‘care’ about the charges they pay on their pensions, compared to seven in 10 who pay close attention to what they pay for a mortgage (71%) or current bank account (70%), latest research from B&CE, provider of The People’s Pension1 has revealed.

A YouGov poll of 1,618 UK adults2 with a pension found that, of those who say they don’t care about what charges they pay on their pension, almost one in five (18%) haven’t got round to looking into or thinking about what they are paying, 16% think they don’t have enough currently saved for charges to make a difference and 14% say they don’t believe charges will make a difference to their pension savings when they come to retire, despite there being clear evidence that higher charges can negatively impact somebody’s retirement savings over the long term.

Meanwhile, a further 14 per cent say they trust that their pension companies’ charges are reasonable, just over one in 10 say that pension charges are too complex to understand (11%) and 10 per cent that it’s too difficult to find out what charges they pay.

Today, in a bid to improve transparency, the provider is calling for all pension schemes to include their charges in pounds and pence on annual statements.

The findings of research come as B&CE3, provider of The People’s Pension, a leading automatic enrolment provider in the UK, announces that it has now given £20 million back to its members in rebates through its charging structure4.

Phil Brown, director of policy at B&CE, said:

“This research is further evidence that the average saver doesn’t understand the impact that charges can have on their pension pot. At a time when people are naturally watching what they spend, it’s important that consumers are aware of what they are paying for their pension, which is potentially the most valuable asset many people own.

“Total transparency around charges is vital. We’ll be adding charges, in pounds and pence, on our members annual statements this year, and are calling on other providers to do the same.”

The survey also found that low charges were important to more than a quarter of respondents (27%) when it came to one of the top three the most important feature of a pension, with only the rate of return on their money invested (36%) and being run by a well-known/trusted company (34%) being considered more important.

The provider believes that the Value For Money (VFM) Framework, currently in development by the FCA and TPR, should be included on pension dashboards to ensure savers have transparent and comparable information before making a decision. It is also calling for the new VFM regulations to be applied to the retail market as well as workplace pensions.

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