Nikhil Rathi emphasises regulatory flexibility and consumer-focused innovation as FCA prioritises pensions savings growth and long-term investment value.
Financial Conduct Authority Chief Executive Nikhil Rathi has outlined a technology-driven approach to pensions reform, announcing that a new Targeted Support scheme will launch in April 2026 to help consumers without access to financial advice. Speaking at the JP Morgan Pensions and Savings Symposium 2026, Rathi emphasised the regulator’s shift towards outcomes-based regulation requiring “less rules in the future” rather than new regulatory prescriptions.
The Targeted Support scheme will enable pension schemes and providers to use limited personal data to offer tailored information and support to consumers currently without financial advice access. This forms part of the FCA’s five-year strategy, published in March 2026, which sets an explicit goal to increase the proportion of adults aged 18–54 holding pensions in accumulation by 2030.
The Numbers Behind the Changes
Currently, around 70% of adults aged 18–54 hold a pension in accumulation, according to FCA data. The regulator also aims to boost the 56% of people with £10,000 or more in investible assets who hold mainstream investments.
FCA enforcement activity has increased, with 40 enforcement outcomes delivered in 2024 compared to 30 in 2023. Six Consumer Duty cases are currently underway, positioning the Consumer Duty regime as the foundation of the FCA’s regulatory approach.
Value for Money Framework Takes Shape
The FCA is working with the Department for Work and Pensions and The Pensions Regulator on a new Value for Money Framework. This shifts regulatory focus from pension costs to long-term returns and transparency – a move welcomed by industry providers including Just Group and Standard Life.
Technology solutions are advancing rapidly. The FCA has now authorised 12 long-term asset funds, triple the number from the previous year. Pensions dashboards and long-term asset fund authorisation are being pushed forward as key technological innovations.
Regulatory Philosophy Shift
Rathi has committed to “digitising and simplifying” authorisation processes to make applications quicker and easier for financial services providers. The FCA is taking a “less intensive” approach to firms demonstrating they are “seeking to do the right thing,” aligned with the government’s wider deregulation agenda to support economic growth.
But questions remain about pension flexibility. Rathi has repeatedly raised the prospect of allowing early pension access for housing deposits as a means of improving financial resilience, especially for lower-income households – though current withdrawal restrictions include a 55% tax penalty if eligibility criteria aren’t met.
Source: @TheFCA
Key Takeaways
- Targeted Support scheme launching April 2026 will provide tailored pension guidance to consumers without financial advice access
- FCA shifting from prescriptive rules to outcomes-based regulation focused on long-term returns rather than just costs
- Technology solutions including pensions dashboards and simplified authorisation processes aim to boost pension participation rates
What This Means for Kent Residents
Kent workers and retirees could see improved pension outcomes through the new Value for Money Framework, which will require greater transparency from workplace pension schemes operated by local employers. The April 2026 Targeted Support scheme may chiefly benefit Kent residents without access to financial advisers, providing personalised pension guidance using their own data. Local households should review their current pension arrangements and consider how pensions dashboards, once launched, could help them track and optimise their retirement savings across multiple schemes.
