On decumulation the TPR wants to develop its guidance to encourage new models that, “combine flexible and predictable retirement income streams and supported pathways for savers.”

It has not made clear what this will mean in practice but it says it expects things to change.

The changes are outlined in the TPR’s new three year Corporate Plan published today. In the plan it sets out how it will protect savers’ money, “enhance” the pension system and innovate in savers’ interests over the next three years.

The TPR says that key challenges in 2024-25 will include embedding the new defined benefit (DB) funding code due to come into effect this autumn, ensuring schemes deliver value for money, raising standards of trusteeship and driving trustees to prepare for Pensions Dashboards.

In years two and three of its plan, the TPR will focus on the delivery of a defined contribution (DC) value for money framework, tackling deferred small pots and working with industry to develop solutions to support savers into retirement.

TPR chair Sarah Smart said: “We will encourage innovation by helping trustees support DC savers into retirement and supporting DB models and options for consolidation that protect savers.” 

Chief executive Nausicaa Delfas said: “This plan signals that the market should expect us to engage differently with it in the future.

“Our focus is not just on the fundamentals of driving high levels of compliance, but also working together to enhance the system and support innovation in savers’ interests. Internally this will involve investing in our people, developing our digital, data and technology capabilities and embedding our new structure, which aligns with our strategic priorities.” 

TPR priorities for the next three years include raising standards of trusteeship, data quality and ensuring schemes meet their obligations to prepare for dashboards.

The regulator also wants to “drive value” in Defined Contribution by having a great focus on investment in its supervisory approach to master trusts.