The Society of Pension Professionals is urging policymakers to ensure the value for money framework helps pension savers make more informed decisions by being consumer friendly. 

In a paper published on Tuesday, ‘Helping pension savers choose: value for money (VfM) in action’, the SPP proposes a ‘consumer facing’ phase of the incoming value for money framework that includes ratings similar to food hygiene scores or energy efficiency labels to help savers compare pension schemes.  

The paper says the current model is still designed for trustees, regulators and governance bodies more than the people whose retirement outcomes depend on it. It examines how value for money information can be built into pensions dashboards, transfer journeys and retirement planning tools, at the same time warning of risks if savers move money based on branding or short-term marketing rather than long-term value. 

“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,” said deputy chair of the SPP DC Committee, Madalena Cain. 

“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.”   

The society proposes: