FRC launches reviews of how pension illustrations can better support savers throughout retirement
News types: Publications
Published: 3 November 2026
For millions of UK savers, pension illustrations help show how today's savings could translate into their long-term income for retirement. The actuarial assumptions underpinning those illustrations play a vital role in providing clear and consistent estimates of future retirement income. As the pensions landscape continues to evolve, the Financial Reporting Council (FRC) is seeking views on how actuarial standards for pensions illustrations should develop to continue supporting savers' retirement planning.
The FRC has today published a Call for Feedback as part of the post implementation review of Actuarial Standard Technical Memorandum 1 (AS TM1) for Statutory Money Purchase Illustrations, alongside a Discussion Paper seeking views on how future standards could support pension illustrations both before and throughout retirement.
Stakeholder feedback will underpin the FRC’s continued work to support the Government’s Guided Retirement initiatives.
Call for Feedback: Post implementation of AS TM1
AS TM1 provides actuarial practitioners with the necessary assumptions and methods used in the calculation of statutory illustrations of money purchase pensions, also known as defined contribution (DC) pensions.
The FRC notes the significant ongoing developments to the DC pensions landscape and recognises its responsibility to ensure AS TM1 continues to support consistent and reliable illustrations of retirement income for savers.
The FRC invites views on all potential areas for development of AS TM1. In particular, the FRC is seeking feedback on two key areas of the methodology under AS TM1:
- The method for determining the accumulation rates to be used for investment funds pre-retirement; and
- The assumption on how the accumulated fund is converted into an income at retirement.
Stakeholders are invited to provide feedback on the post implementation review by 26 January 2027.
Discussion Paper: Standards for DC Pensions Illustrations
In addition to reviewing AS TM1, the FRC is committed to the continued development of the UK’s actuarial standards. In support of the Government’s consultation on Guided Retirement, the FRC is seeking views on developing new standards for illustrations. These standards would seek to modernise illustrations so they can reflect the different ways savers may choose to access and use their pension savings in retirement.
The FRC invites views on how pension illustrations issued before retirement could be developed to show the impact of different default pension benefit solutions. For illustrations provided during retirement, views are sought on how sustainability of withdrawals should be illustrated and how to illustrate converting the remaining pension pot to an estimated lifetime income.
Stakeholders are invited to provide feedback on the discussion paper by 26 January 2027.
Mark Babington, FRC Executive Director of Regulatory Standards“For millions of savers, pension illustrations provide an important indication of how their savings today could translate into income in retirement. As defined contribution pensions become increasingly important, it is vital that savers receive information that is clear, consistent and relevant to their needs.
As part of our commitment to supporting the Government's pensions reform agenda and the ambition set out in its roadmap to deliver a pensions system fit for the 21st century, we are seeking industry views on how pension illustrations should evolve to better support savers both before and throughout retirement.”
Torsten Bell, Minister for Pensions"Private sector workers deserve a much better deal when it comes to pensions. They are doing the right thing and saving for retirement, but when they get there too many are left without a genuine pension.
“We are resurrecting proper pensions for private sectors workers, guaranteeing them the option of an income that last throughout retirement and in many cases protection against the rising cost of living - things public sector workers take for granted.
“We are going to give pensions back to the people who are working hard and saving for their retirement.”
The FRC is also inviting stakeholders to attend a roundtable discussion to support the development of these standards. The roundtable is scheduled to take place online from 11:30-13:00 on 30 November 2026. To express your interest in attending this roundtable, please email [email protected].
Read the FRC's Call for Feedback: Post implementation of AS TM1.
Read the FRC's Discussion Paper: Standards for DC Pensions Illustrations.