Regulator publishes blog on the importance of trustees protecting savers from economic volatility

The Regulator has highlighted the need for trustees to stay focused on protecting savers from economic volatility, following last year's economic turmoil. The recent blog post, the Regulator comments that although equities have enjoyed a stronger year to date, bonds have continued to suffer in a climate of rising interest rates and high inflation. DC trustees are urged to use the Regulator’s guidance to protect savers who are close to retirement and could be impacted depending on the investment strategy of their scheme, as these savers have the least time to make up any losses.

The blog also notes the importance of trustees' fiduciary duty to ensure key requirements are met “and to ensure investment strategies support stronger saver outcomes in the years to come”. The Regulator expects trustees to guard against the risks of savers making knee-jerk decisions which could harm their retirement plans. Therefore, the next benefit statement could prove a key turning point for many savers, and trustees need to take action in response. Trustees are urged to engage with members approaching retirement to review and update their choices. The timing of starting to take benefit could significantly impact a pension pot and trustees should encourage savers to consider these issues when they see their annual benefit statement.