10 March 2026
Festina Finance, a leading European provider of pension administration technology, today said that pension systems that integrate the retirement income decision from the outset are far better positioned to deliver sustainable outcomes for members.
International experience, including recent research by the TIAA Institute on retirement income systems, highlights clear lessons that policy-makers and trustees can adapt for the UK market.
Dan McLaughlin, UK Country Head at Festina Finance, commented: “The common thread internationally is that the retirement income decision is not treated an afterthought. When it is embedded from the outset, supported by clear defaults and robust governance, schemes make it significantly easier for members to secure more sustainable income for life. Countries such as Switzerland and Chile demonstrate that integrating income options directly into the member journey, through occupational plans or standardised national marketplaces, can increase engagement without mandating any particular choice.
“International evidence also highlights the benefits of adjustable or variable income arrangements, where payments can move within transparent rules linked to funding or longevity. These designs preserve the principle of lifetime income while improving long-term sustainability, which is particularly relevant to UK discussions around collective defined contribution (CDC) schemes. The retirement income decision does not need to lock members into fixed payouts. Well-governed, adjustable income models can balance security with flexibility, giving members both confidence and control.”
McLaughlin concluded: “Supporting the retirement income decision requires modern, adaptable administration systems. Many legacy platforms were designed and build for accumulation, not decumulation, and are not optimised for hybrid designs or on-demand income options and D2C self-service style services. When the income decision is integrated into the core pension journey, members engage with it more confidently and effectively. Research suggests that integration, not coercion, drives better take-up and better outcomes.
“Ultimately, this is not about replicating international systems. It’s about understanding how the retirement income decision is evolving, learning from what has worked elsewhere, and making sure the underlying infrastructure supports members to make confident and effective decisions.”
ENDS
