Traditionally, the role of retirement fund advisers was mainly technical, with a focus on understanding fund rules, assisting with compliance and providing input on investment mandates and administrator selection. However, in today’s shifting landscape, advisers are increasingly considered as strategic partners by their clients (trustees, employers, fund administrators and members).
The cost and complexity of running standalone retirement funds has increased on the back of legislative reforms and how market participants, such as fund administrators and investment managers have responded to them. As a result, many employers are opting for umbrella funds instead. As these changes unfold they have an impact on the role of the advisers. While investment strategy remains critical, advisers now typically evaluate the suitability of default investment options across umbrella fund providers rather than constructing portfolios directly.
Under Regulation 37 of the Pension Funds Act, retirement funds must off er default portfolios that are appropriate, reasonably priced and clearly communicated to members. Advisers are increasingly called upon by employers to assess whether these defaults align with their funds’ member demographics, risk profi les and long-term objectives. Advisers are also asked to compare how administrators implement these defaults in terms of pricing, life-staging methodology and performance relative to industry peers.
Member-centric advice in a reform-driven landscape
The introduction of compulsory annuitisation in 2021 and the roll-out of the two- pot retirement system in 2024 have reshaped how members engage with their retirement savings. Members need more guidance to navigate their options – including around making early withdrawals – and make informed decisions. Increasingly, employers are asking retirement fund advisers to off er direct advice to underlying members on these complex choices. This shift represents a challenge to advisers, but also opportunities to expand their client base and revenue.
Decision-making for members exiting retirement funds, whether before or at retirement age, has also become more complex. Members must consider how much of their savings can be accessed in cash, which tax tables apply to each component and what portion must be used to purchase a living or guaranteed life annuity. Advisers who provide clear guidance, practical tools and well informed conversations are uniquely positioned to help members navigate these choices confidently.
Regulatory pressure and professional risk
As the Financial Sector Conduct Authority (FSCA) sharpens its focus on market conduct and consumer outcomes, advisersare facing increased scrutiny. The regulator’s transition to outcome-based supervision means advisers need to demonstrate that they provide quality recommendations that lead to fair, sustainable results, rather than merely meeting the minimum requirements that sufficed in the past.
All eyes will be on the FSCA when they roll-out their Integrated Regulatory System (IRS), a data-driven platform, to monitor advice practices and flag potential risks, in late 2026. It will also support the implementation of the Conduct of Financial Institutions (COFI) Bill, which aims to improve outcomes for financial customers. The IRS will hold advisers accountable for broader patterns and outcomes.
Success in this environment requires commitment to ongoing professional development, rigorous due diligence and ethical standards that exceed regulatory minimums.
Opportunities in a changing industry
Despite the challenges, this environment presents significant opportunities, including in financial education: Demand for member workshops, tailored advice and digital tools is rising.
Technology can also be an enabler, with digital platforms and data analytics aiding more precise, personalised and scalable solutions, which are especially important in a country with varying levels of financial literacy and access.
Staying relevant
To remain effective, advisers must adopt a proactive and adaptive mindset. Continuous learning – through workshops, certifications and meeting professional development requirements – is essential. Networking and collaboration with peers, regulators and industry bodies is equally important, as this provides insights and fosters influence, helping advisers stay ahead of trends and contribute meaningfully to policy.
Monitoring international trends in retirement reform and financial technology can also enhance local practice, bringing fresh perspective and problem-solving measures.
Ultimately, the adviser’s role is becoming more dynamic, demanding and impactful. Those who embrace the transition will contribute to a more resilient and inclusive retirement system.
