From pension pot to an income in retirement – driving an industry shift

The importance of improving member outcomes was a key topic at the Pensions UK Conference. Torsten Bell highlighted the need for an industry-wide shift from building pension pots to providing an income in retirement.

Our DC Director, Philip Smith, spoke about the kind of guidance members need to help them achieve a simpler, safer, and more secure retirement. Here, he explains why – and how – TPT has  designed and launched a completely new approach to decumulation.

For many savers, the moment of retirement brings not only new opportunities but also uncertainty. After years of building up a pension pot, the next big challenge is turning that pot into a steady income that lasts a lifetime*. Yet, as research from the FCA and PPI shows, almost 70% of people make retirement decisions without taking any regulated advice or using free guidance services like Pension Wise. Even more worryingly, a third of those entering drawdown do so without a clear income strategy. The result? A high risk of poor outcomes.

Prioritising members’ real-world needs

At TPT, we recognised this challenge and decided to tackle it. Over the past two years, we’ve completely redesigned our approach to decumulation, putting members’ real-world needs at the centre. 

Bringing the power of the default into retirement

Most savers benefit from the “power of the default” during their working lives, where their pension contributions are automatically invested in a well-designed default fund. We wanted to bring that same confidence and simplicity into retirement. By extending our default investment strategy right through to age 95, members can remain in a single, consistent journey from their first day of saving to drawing their income later in life.

This approach means members don’t have to make complicated product choices or move their savings into different schemes. Instead, they stay within a familiar, trustee-governed structure that manages their investments and income sustainably over the long term.

A guided, flexible journey

We know that no two retirements look the same. Some people continue working part-time; others need more flexibility early on or may later want to lock in a guaranteed income. TPT’s new solution has been designed with that in mind. Members can start with a fully managed income strategy aimed at providing a sustainable, inflation-linked income for life with the flexibility to change course if their circumstances or preferences evolve.

Importantly, our design also recognises the realities of later life, including the potential impact of cognitive decline. Members who want to secure certainty can transition into a guaranteed income option, all within the same, seamless framework.

Supporting members with clear guidance and communication

A well-designed solution is only effective if members understand it. That’s why we’ve invested heavily in the member journey, building online tools, guidance pathways, and clear communications to help members compare their options and make informed decisions. Our approach starts with the outcome we all want: confidence. We want every member to feel sure that their pension will provide the income they need, when they need it.

Turning pots into pensions simplified

Ultimately, TPT’s decumulation solution is about redefining what a pension truly is not just a pot of money, but an income for life. By blending flexibility, sustainability, and strong trustee oversight, we’re helping members move from saving to spending with confidence and clarity—making retirement simpler, safer, and more secure.

*To age 95