The FCA has found that peopleholding legacy pension products,now closed to newsavers, could be receiving poorer value than those in newer ones. The regulatoridentifiedsome good practices,butcomplexcharging structures,older product design andweakness infirms’datameantsome pension savers are not getting as much value as they could.What good looks likeSomeunit-linked non-workplace pension providers are working tosimplifyor rationalise their legacyproductsandfunds,orhaveplans to do so. There was evidence of firmscappingor reducingchargesfor customers in legacy products.Some were also comparing outcomes acrossdifferentcustomergroups andproducts, andmovingcustomers to better-value alternatives.The FCA is now calling on all pension providers toconsiderthe reportandtake on the good practiceidentified. The regulatoris also engaging with firms onbarriersthey face in improving the valuefor customers, particularly in closed books.Charlotte Clark, director of cross-cutting policy and strategyat the FCA said:’Consumers in older products shouldnot be left behind,and the good news is that some firms are already showing it doesn’t have to be this way. We want to see that progress reflected right across the market.’This work supports wider reforms, including targeted support and pensions dashboards, to help consumersget the most fromtheirpensions.It is also a priority underthe FCA’sPensions Regulatory Prioritiesand forms part ofitsbroader work on modernising pensions and long-term savings.Notes to editorsUnit-linked pensions and savings: multi-firm review of Consumer Duty price and value practices.The FCA recently launchedproposalsforthe self-invested personal pension (SIPP) market (CP26/20).The consultationcloses on24 August 2026.
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