The Society of Pension Professionals (SPP) has published a new thought leadership paper, Helping Pension Savers Choose: Value for Money (VfM) in action, which calls for the UK's emerging VfM framework to evolve into a practical tool that helps pension savers make better-informed decisions about their retirement savings.
While welcoming the UK Government's proposed VfM framework as a major step forward in improving transparency, accountability and standards across the pensions market, the paper argues that the current model is still primarily designed for trustees, regulators and governance bodies rather than the millions of individuals whose retirement outcomes depend on it.
The paper proposes a future “consumer-facing” phase of the framework, including simple pension ratings similar to food hygiene scores or energy efficiency labels, designed to help savers compare pension schemes quickly and confidently.
The paper explores how VfM information could be integrated into pensions dashboards, transfer journeys and retirement planning tools, while also highlighting the risks of “harmful switching” if savers move money based on branding or short-term marketing rather than long-term value.
Among its recommendations, the SPP suggests:
- Simple, standardised consumer VfM ratings;
- Greater focus on expected retirement income rather than headline charges alone;
- Behavioural testing with real savers before implementation;
- Stronger safeguards around pension transfers and consolidation;
- A phased approach to embedding VfM into consumer decision-making.
The SPP believes that, over time, a well-designed consumer VfM framework could become a key driver of competition based on long-term retirement outcomes rather than marketing strength or short-term performance.
Madalena Cain, Deputy Chair of the SPP DC Committee, said:
“If the VfM framework is going to improve member outcomes then it can't be just a technical reporting exercise for the industry. Savers need information they can actually understand and use.
“The challenge now is turning complex pension data into clear, meaningful signals that support both better decisions and better retirement outcomes. This paper should help stimulate debate and shape thinking as to how this could occur in practice.”
