Six pension providers have confirmed they will launch new ‘flex then fix’ retirement products in the next 12 months, according to Corporate Adviser’s latest Workplace Pensions into Retirement Report.
The report contains exclusive research on the range of new retirement income products being planned to meet the new regulatory requirements of the Pension Schemes Bill, currently making its way through Parliament.
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The report names the providers looking to launch ‘flex then fix’ propositions. The research also shows widespread support for new retirement-only CDC options, with seven providers saying it is ‘probable’ they will offer this, including Aon, Fidelity, LifeSight and Standard Life. Meanwhile the report confirms Nest is exploring the feasibility of developing a longevity risk solution as part of a default retirement income offering.
The report also takes an in-depth look at the performance and asset allocation of current at-retirement and post-retirement strategies for both master trust and GPP workplace schemes. It found that while performance has been positive across all strategies in 2025, there remains significant variation on allocations strategies for decumulation.
Aegon’s BlackRock LifePath Flex default delivered the highest return to members in the 12 months to 30.06.25, with a 10.12 per cent return before charges, for those one day from the State Pension Age (SPA). At the other end of the scale NatWest Cushon delivered the lowest return over this period, with a return of 4.25 per cent.
When it comes to investment pathways, LifeSight has delivered the highest returns for members on the four defined pathways. The report also detailed the very different asset allocation approaches taken, particularly on pathway 4, preserving cash. Here, some providers were 100 per cent invested in cash, while others had up to a quarter of funds invested in overseas equities.
The report also compiles data on how members are drawing benefits when they reach State Pension Age. It found that with many providers a significant majority are still withdrawing their pots as cash, but the proportion doing so is falling, even among big auto-enrolment providers.
Nest saw the proportion of its savers taking pots as cash fall from 87 per cent to 83 per cent. The People’s Pension saw an even bigger fall, from 81 per cent to 65 per cent.
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