The pensions industry must prepare for a fundamental shift in saver behaviour driven by technology, Financial Conduct Authority (FCA) chief executive, Nikki Rathi, has said, warning that policy must move beyond “simple paternalism” as engagement increases.

Speaking at the J.P. Morgan Pensions and Savings Symposium 2026, Rathi said that forthcoming pensions dashboards and digital tools could significantly alter how consumers interact with their retirement savings.

“Modern pensions policy has to move beyond that kind of simple paternalism,” he stated, arguing that while strong guardrails remained essential, the system must increasingly enable individuals to make informed decisions about “what is, ultimately, their money”.

Rathi suggested that the rollout of pensions dashboards would mark a “significant change” in visibility, giving 10s of millions of savers a consolidated view of their pension wealth for the first time.

This, he said, was likely to prompt a range of behavioural shifts, from basic data checks to more complex decisions around consolidation and retirement planning.

“We have to ask ourselves: with 10s of millions of pots suddenly becoming visible, are administrators doing enough to prepare for a significant increase in queries?” he continued, highlighting operational readiness and customer experience as immediate concerns.

He also pointed to the risk that increased engagement does not automatically translate into better outcomes, stressing that policymakers must balance consumer empowerment with appropriate protections.

“Our goal is not a ‘risk-free’ system, but a ‘risk-aware’ one,” he added.

The speech came ahead of the launch of targeted support, which Rathi said would help bridge the gap between guidance and regulated advice, particularly given that 75 per cent of defined contribution savers over 45 currently lack a clear retirement plan.

In addition, the FCA is set to consult on proposals to simplify advice rules, with the aim of expanding access while reducing complexity for firms.

Technology, Rathi argued, would play a central role not only in increasing engagement but also in shaping how support is delivered.

Citing research indicating that over half of UK adults were already using AI to help manage their finances, he suggested that digital tools could enable consumers to explore complex retirement questions more easily and at lower cost.

However, he warned that firms will need to invest in data and infrastructure to meet rising expectations.

“The firms that have invested in those capabilities are increasingly better placed to meet the expectations of a more engaged generation of savers coming through. Others need to catch up - fast,” he stressed.

Rathi also emphasised the growing interconnection between pensions, housing and broader financial resilience, noting that around 80 per cent of household wealth at retirement was typically held in pensions and property.

This, he said, raised important questions about how consumers navigate decisions such as drawdown, downsizing or later-life borrowing, particularly as mortgage terms extend further into retirement.

The FCA is therefore launching a market study into later-life lending to assess whether the market can evolve to meet changing consumer needs.

Rathi concluded by stressing that while multiple regulators and industry bodies will need to act, the direction of travel must remain aligned.

“Where improvements can be made today, we shouldn’t delay,” he added, expressing hope that further progress would be evident over the coming year.

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