Protecting member value must remain at the heart of government pensions reform, according to a new whitepaper from Altus Consulting, which finds mixed confidence in the current direction of policy.
The report, The High Street Revolution: Will building pension megastores solve the DC savings challenge?, draws on insights from 56 senior industry stakeholders surveyed in late spring.
It highlights strong support for long-term goals such as protecting member value, boosting returns and maintaining a competitive pensions market, prioritised as “high” or “very high” importance by 90% of respondents.
However, the government’s vision of accelerated scheme consolidation and UK-focused investment drew a more cautious response.
While there is broad acceptance that scale could bring benefits, many warned that consolidation must be judged by its ability to improve outcomes, not just create larger entities.
Industry figures voiced concerns that reforms could restrict innovation and reduce consumer choice, particularly disadvantaging smaller or newer providers.
Several stakeholders suggested the government’s proposed 2035 consolidation timeline is overly ambitious given current market and regulatory constraints.
Altus CEO Martyn Evans welcomed the government’s efforts but urged it not to lose sight of its ultimate purpose.
“The economics of consolidation may make sense on paper, but members will ultimately judge the system by the outcomes it delivers: value for money, trust, clarity and meaningful support when it matters most,” he said.
Evans added that both government and regulators must ensure the pursuit of efficiency does not come at the expense of competition, long-term resilience or member engagement.
Support for greater investment in UK assets was similarly qualified. Stakeholders were open to boosting productive finance allocations, but only where it aligned with strong governance, long-term returns and genuine member value.
Few backed the idea of UK-focused investment as a policy goal in its own right.
The report concludes that reforms will require more than structural changes.
It calls for clearer regulatory expectations, streamlined processes and greater capacity within regulators to manage a complex, multi-scheme transition.
“There is broad support for change, but blueprints do not deliver value on their own,” said Evans.
“What matters is how they are brought to life — through decisions that balance ambition with realism and remain rooted in the lived experience of savers.”
