The government has published a roadmap setting out the timetable for implementing its workplace pension reforms, including a phased rollout of the value for money (VFM) framework from 2028.

From 2028, master trusts, large single-employer schemes, and multi-employer contract-based schemes open to new employers will be required to complete and publish VFM assessments.

The framework will then be extended to all workplace pension schemes from 2029.

Developed with The Pensions Regulator (TPR), the Financial Conduct Authority (FCA), HM Treasury and the pensions industry, the roadmap covers the delivery of measures under the Pension Schemes Act, including the VFM framework, defined contribution (DC) consolidation and default retirement solutions.

Under the VFM framework, schemes will be assessed on investment performance, costs and charges, and the quality of their service.

Schemes will receive a rating ranging from red (poor value) to green (outperforming on value), with poorly performing schemes required to improve or close.

Where schemes fail to act, regulators will be able to issue compliance notices, impose fines or, in serious cases, take steps to wind them up.

The government said the increased transparency would allow savers to compare their scheme’s performance with the wider market and help shift the industry’s focus away from cost alone towards overall long-term value.

Pensions Minister, Torsten Bell, stated that the government’s aim was to raise the quality of pensions received by private-sector workers towards that available in the public sector.

“For the first time, we’re making sure savers can see whether they are getting a good deal from the pension they’re saving into," he said.

“We can’t have people working hard to earn the money they save towards retirement, only to have those funds sitting in schemes that aren’t working just as hard on their behalf.”

Bell warned that the difference between the highest- and lowest-performing schemes could have a significant impact on retirement outcomes.

“The stakes are high, when the gap between the best and worst performers could cost a saver with a £10,000 pot over £5,000 across just five years,” he added.

Government analysis, based on CAPAdata for the first quarter of 2026, showed that annualised five-year returns for younger savers ranged from around 5 per cent to 13 per cent across a sample of large pension schemes.

For a £10,000 pot, assuming no further contributions and an annual charge of 0.5 per cent, the difference in performance would result in a variation of more than £5,000 after five years.

Alongside the roadmap, the government published a discussion paper outlining its plans to create a market of fewer, larger pension schemes and seeking industry views on how to assess scale.

From April 2030, automatic enrolment schemes in scope will be required to hold at least £25bn in assets under management, or to have at least £10bn in assets under management alongside a credible plan to reach £25bn by 2035.

The government argued that these larger megafunds would be able to deliver lower fees, stronger returns and greater investment diversification.

The reforms will also introduce default retirement solutions designed to help savers turn their pension pots into a reliable retirement income.

Although members will remain free to choose another option, the government said the system would no longer rely on individuals navigating complex retirement decisions without support.

It estimated that the wider package of Pension Schemes Act reforms could increase the average saver’s pension pot by £29,000 by retirement.

FCA deputy chief executive, Sarah Pritchard, said the VFM framework would create a consistent method for comparing outcomes across workplace pensions.

“This framework puts savers first. For the first time, it creates a consistent way to compare value across workplace pensions, bringing transparency to the outcomes that really matter," she added.

TPR executive director of strategy, policy and analysis, Richard Knox, described the framework as a “major milestone”, adding that the roadmap would provide greater clarity as the industry prepared for implementation.

ABI director of long-term savings policy, Dr Yvonne Braun, welcomed the roadmap's long-term direction but stressed that implementation would require coordination among government, regulators and industry.

“The implementation programme must be clear and coordinated, with regulatory alignment at its heart, to help ensure reforms achieve their objectives and deliver better outcomes for savers," she said.

PMI chief strategy officer, Helen Forrest Hall, noted that the roadmap provided an opportunity to offer the long-term certainty and strategic direction needed to create a stronger pensions system.

Meanwhile, Society of Pension Professionals Administration Committee deputy chair, Gareth Stears, claimed the roadmap would help schemes, providers and administrators plan for the significant volume of change ahead.

“A roadmap is valuable because it allows schemes, administrators and providers to plan investment, allocate resources, train staff and deliver change in a way that maintains good outcomes for members,” he continued.

“Without that certainty, there is a real risk that multiple reforms compete for the same finite operational capacity.”

Stears added that maintaining a clear sequence of reforms and allowing sufficient time for implementation would put the industry in a stronger position to deliver lasting improvements for savers.

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