New standards to increase the chances of retirement savers being enrolled into good quality pension schemes have been outlined by the regulator.
The Pensions Regulator, which oversees work-based pension schemes across the UK, published standards that defined contribution (DC) pension schemes should meet, to make it more likely that people will see good outcomes from their retirement savings.
The regulator is concerned that landmark changes to automatically place millions of people into pension schemes means that providers will need to communicate with employers and workers who have little previous experience of pensions.
Calls have been made for more to be done to point people in the direction of schemes which offer good value for money.
Under the Government's reforms, which started last autumn with larger firms, between five and eight million people are expected to be saving more or saving for the first time, the vast majority into DC schemes.
DC schemes, which have increasingly replaced final salary pension schemes, invest the money a worker pays into it and any employer contributions and give a lump sum on retirement, which can then be used to secure a pension income.
The Pensions Regulator has developed six principles for the good design and governance of workplace DC schemes.
They aim to encourage good communication with members, good administration and good ongoing governance and monitoring.
They will also help to make sure that those who are accountable for schemes understand their duties that there is clear accountability, and that schemes are durable and fair.
Its standards are being issued for consultation, with responses to be submitted by March 28.