The FCA says that pension firms must do more for customers who have older pensions and fund savings because of concerns that some of them may be receiving poor value.
Research by the regulator found that pension savers holding legacy pension products (those closed to new savers), could be receiving poorer value than those in newer pensions.
The regulator said it had identified some good practices, but "complex charging structures, older product design and weaknesses in firms' data" meant some pension savers were not getting the value they should.
On the positive side, some unit-linked, non-workplace pension providers are working to simplify or rationalise their legacy products and funds, or have plans to do so, the FCA said. There was also evidence of firms capping or reducing charges for customers in legacy products.
Some were also comparing outcomes across different customer groups and products and moving customers to better-value alternatives.
The FCA is calling on pension providers to consider its report and adopt good practices identified. The regulator is also engaging with firms on barriers they face in improving the value for customers, particularly with closed books.
Charlotte Clark, director of cross-cutting policy and strategy at the FCA, said: "Consumers in older products should not be left behind, and the good news is that some firms are already showing it doesn't have to be this way. We want to see that progress reflected right across the market.”
The FCA says its work supports wider reforms, including targeted support and Pensions Dashboards, to help consumers get the most from their pensions. It is also a priority under the FCA’s Pensions Regulatory Priorities and forms part of its broader work on modernising pensions and long-term savings.
• Unit-linked pensions and savings: multi-firm review of Consumer Duty price and value practices. The FCA also recently launched proposals for the self-invested personal pension (SIPP) market (CP26/20). The consultation closes on 24 August 2026.