Advisers increasingly see retirement support as key differentiator for pension providers

Almost half (48 per cent) of independent financial advisers (IFAs) believe retirement support is becoming the key differentiator between workplace pension providers, while 64 per cent feel providers still look too similar, research from People’s Pension has found.

The study, which surveyed 200 IFAs in July 2026, found that while 59 per cent said cost remained a key factor when employers choose pension providers, almost six in 10 (58 per cent) believed member outcomes and support now matter more than cost alone.

More than a third (35 per cent) of those surveyed expected retirement income solutions to become a major differentiator over the next five years.

This reflected a wider need for greater retirement support, with more than half (54 per cent) saying workplace pensions struggle to engage members as many people prioritise immediate financial needs and delay retirement planning until later life.

The findings suggested providers could stand out by supporting members throughout their savings journey and into retirement.

Commenting on the research, People’s Pension distribution director, Stuart Reid, said: “Supporting people at retirement is a very different challenge to helping them save.”

While automatic enrolment has introduced people through a relatively simple framework, “members arrive with different pot sizes, circumstances, priorities and expectations of what retirement will look like,” he said.

“That diversity is one of the reasons that retirement has been a much tougher challenge for the industry to crack," Reid added.

"There isn’t a single journey that will work for everyone, particularly for providers serving millions of members from across the UK.”

Reid said that People’s Pension was building “a much richer understanding of the choices people make, where they need support and how those needs differ across our membership,” helping them develop retirement propositions that reflect how people want to use their pension savings.

He added: “The providers that stand out will be those that can use what they learn from their members to give people the right support, at the right time, whatever their circumstances.”

This article originally appeared in our sister publication Pensions Age.

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