The launch, by the FCA and The Pensions Regulator yesterday, of a joint regulatory strategy aimed at taking action to deliver better outcomes for pension consumers has been backed by the profession.

The strategy identified key issues which contribute to the prospect of people not having adequate income, or the income they expected in retirement.

To tackle the main drivers of the problem the FCA and TPR set out plans for the pensions sector over the next five to ten years.

That approach has been welcomed by experts.

Steven Cameron, pensions director at Aegon, said: “While the FCA and the Pensions Regulator have different remits regarding regulating pensions, there is now so much overlap that it’s very welcome to see a joint regulatory strategy which we hope will lead to a long-term consistent approach across contract and trust based pensions.

“This will benefit members who often have both types of pension as well as ensuring efficiencies for schemes and providers through consistent regulation.

“We particularly welcome the new joint review of the consumer pensions journey which should focus on how schemes, providers, advisers and guidance services can work together to support individuals from the very start to the very end of their pensions journey.”

Hugh Savill, director of regulation at the Association of British Insurers (ABI), said: “The FCA and TPR joint pensions strategy rightly identifies the potential harms and risks in the pensions and retirement income sector, particularly that people will not have adequate income in retirement.

“Close collaboration between the regulators and across the industry is key to ensuring that consumers are protected and to improve outcomes.

“We look forward to working with the FCA and TPR to create a retirement market that works for all.”

Steve Webb, director of policy at Royal London, added: “It is a good sign when regulators work together to make sure that they are pulling in the same direction.  

“All too often government and regulators investigate individual financial products or specific points in people’s lives such as retirement.  

“These plans are helpful because they will look at the whole of our ‘pensions journey’ - from starting work and being enrolled into a pension, through building up a pension pot and making choices at retirement and through retirement.  

“This should help them to see the bigger picture and produce better outcomes in the long term.”