TPT Retirement Solutions has now launched its managed income decumulation solution for defined contribution savers, just after the pension schemes bill confirmed a new legal duty will be put on trustees to offer a default retirement solution to their members.  

The DC master trust, which also runs defined benefit schemes, said the retirement product will be “a simple, cost effective and easy-to-use alternative for members who do not want to make investment decisions, carry out complicated calculations or seek financial advice”.   

It comes as the pension schemes bill includes a requirement for pension trustees to default DC scheme members into a pension benefit solution that is designed to provide a regular income. Non-compliance with the requirement can be fined by the Pensions Regulator with a fixed penalty notice of up to £100,000.  

DC director Philip Smith said: “The lack of confidence among pension savers in making retirement decisions—coupled with an aversion to or the affordability of taking financial advice—creates significant risk for individuals’ financial futures. Our new solution aims to bridge this gap. By offering a default pathway into drawdown, backed by digital tools and flexible options, we’re empowering members to make informed, confident decisions—without needing to become financial experts.”  

TPT first announced plans to create a product that targets an inflation-linked retirement income up to age 95 in March 2023, at the time citing a launch date of late 2023 or early 2024. The provider is also looking to bring a multi-employer collective DC offering to market. Legislation to allow this is expected in the autumn. 
   

   

 

Decumulation must become a central focus if retirement outcomes are to improve, said chief executive David Lane. 
  

“Our new DC solution provides a clearer, more flexible route to turning pension savings into income – one that helps members plan with confidence and adapt their income over time. Importantly, it reflects our belief that retirement income should last for life, respond to inflation, and be easy to access without expensive advice. Innovation in this space is long overdue – we are thrilled to be at the cutting edge of this,” he said.  

For members choosing the retirement income product, TPT calculates and makes regular drawdown payments, managing the level of withdrawals so that a member’s pot lasts to age 95 – with two to three years of funds left – or until age 75 if they prefer to buy an annuity at that point. Members can adjust income levels and capital withdrawals during the drawdown phase. 

TPT will need to explain the new product to members. It has invested in a technology platform to improve digital engagement and offer educational resources and retirement planning support, aligned with the Pensions and Lifetime Savings Association’s Retirement Living Standards.  

The provider had £11.6bn of assets under management as at 30 September last year, serving more than 470,000 mostly female members.