DP26/2: Guided Retirement

Read DP26/2

Why we are publishing this Discussion Paper

This Discussion Paper, which is published as a policy consultation for the DWP, sets out our initial joint proposals for how Guided Retirement will operate in practice.

Guided Retirement is intended to build on the success of automatic enrolment which has led to a significant increase in participation in defined contribution (DC) pensions. It aims to remove the need for individuals to make complex decisions at the point of retirement through default pensions that provide a clear, high-quality route into retirement for the mass market.

We will seek to build on the targeted support conduct framework in COBS 9B and adapt these rules where necessary for the purpose of setting conduct rules for Guided Retirement for contract-based providers.

Who this is for

• Firms operating contract-based workplace pensions.
• Trustees and sponsors of trust-based schemes.
• DC pension scheme savers and beneficiaries.
• Pension scheme service providers, other industry bodies and professionals.
• Employers.
• Groups representing consumers’ interests.
• Pensions administrators.
• Any other interested stakeholders.

Next steps

Please submit your consultation responses by 22 December 2026 using the response form. Alternatively, you can send your response to the DWP Guided Retirement Policy Team by emailing [email protected]. Responses will then be shared with the FCA and TPR.

We intend to consult on draft rules and guidance in H2 2027, in line with the Government’s updated roadmap for workplace pensions. In parallel, the DWP plans to consult on draft regulations for trust-based schemes.

Background

Automatic enrolment in workplace pensions has been successful in supporting people to save, but the broader longer-term shift from defined benefit (DB) pensions to DC savings pots has placed much greater responsibility on individuals at the point of retirement. This shift exposes individuals to a range of complex risks and decisions.

The Pension Schemes Act 2026 introduced duties on trustees to provide well-designed default pensions for these consumers. The FCA are required to introduce rules which, so far as possible, achieve the same outcomes.