FCA Chief Nikhil Rathi Outlines Tech-Driven Pension Reforms and Upcoming Advice Rules

Technological advancements and new digital tools are fundamentally reshaping how consumers interact with their retirement savings, prompting regulatory updates across pensions, guidance, and later-life lending, according to Financial Conduct Authority (FCA) Chief Executive Nikhil Rathi. Speaking at the JP Morgan Pensions and Savings Symposium 2026, Rathi outlined the FCA's agenda to adapt regulatory frameworks to a more engaged and digitally equipped consumer base. He confirmed that the regulator's 'Targeted Support' regime is scheduled to go live next month, aiming to bridge the gap between generic guidance and fully regulated advice. In addition, the FCA will publish proposals next week to simplify rules around personalised advice, expanding access for consumers while reducing compliance complexity for firms. Rathi noted that the forthcoming rollout of pensions dashboards will give tens of millions of individuals consolidated visibility over their pension pots for the first time. This increased transparency is anticipated to drive significant demand for scheme administrators, alongside heightened interest in pension transfers and pot consolidation. Rathi urged administrators and providers to ensure systems and customer service infrastructure are prepared for a surge in queries and transfer requests. Addressing regulatory philosophy, Rathi emphasized the FCA's objective of establishing a 'risk-aware' rather than a 'risk-free' system, moving away from paternalism toward empowering consumers to make informed choices with appropriate guardrails. The regulator pointed to findings that 75% of defined contribution pension holders over the age of 45 currently lack a clear plan for accessing retirement funds, while external research suggests over half of Gen X savers face inadequate retirement incomes. Rathi also highlighted how emerging technologies and artificial intelligence are enabling consumers to test retirement scenarios and investment options at lower costs. Following a December consultation on pension tools and modellers, the FCA is encouraging firms to leverage regulatory support mechanisms—including the FCA Sandboxes, Innovation Pathways, and AI Live Testing—to test new digital solutions safely. Alongside pensions policy, the FCA published Terms of Reference for a market study into the later life mortgage market. The study will evaluate how products such as lifetime mortgages and retirement interest-only mortgages interact with pension drawdown, examining whether the market supports holistic financial planning across housing wealth and retirement assets.