Why CAPAdata

CAPAdata offers unique independent, detailed insights into the propositions, functionality, at-retirement capabilities and returns of all main multi-employer DC pension providers. The data is used by the Department for Work and Pensions, Financial Conduct Authority, Bank of England and HM Treasury and is cited in numerous Government consultations and policy documents. It is the only publicly available performance data that compares, ranks and benchmarks both trust-based and contract-based schemes, making it essential for anyone analysing and comparing value in DC pensions.

The UK pension landscape is undergoing its most significant transformation in decades. The government's "Pensions Investment Review" consultation (November 2024) signals decisive action to drive consolidation, increase scale, and shift focus from costs to value across the £800 billion workplace DC pension market:

Key regulatory developments that make CAPAdata essential:

  • Mandatory Value for Money (VFM) Framework: All DC pension schemes will soon be required to demonstrate value through standardised metrics
  • Provider Scale Requirements: Minimum asset thresholds are being proposed for default funds (potentially £25–50 billion)
  • Reduction in Number of Default Funds: Limits on the number of default funds providers can operate
  • Employer Value Assessment Duty: Potential new requirements for employers to regularly assess scheme value
  • Executive Responsibility: Likely named executive accountability for employee retirement outcomes
  • Enhanced Adviser Regulation: New oversight of pension scheme selection advice
  • Retirement outcome solutions: Requirement for DC schemes to offer decumulation solutions

15 compelling reasons why CAPAdata is essential today

1. Compare DC pension schemes’ performance, functionality, ESG characteristics and asset allocation
Rank and compare performance and functionality data across 19 multi-employer DC providers, covering 98 per cent of the UK multi-employer DC pension sector.

2. Effortlessly create client-ready reports incorporating multiple data points
Convenient one-stop access to provider profiles and functionality data, ESG analytics, at-retirement functionality, Sharpe Ratios and Top/Bottom Price Variance, Risk/return tables, CAPAdata benchmarks — downloadable via CSV and JPEG.

3. Analyse provider at- and post-retirement strategy and decumulation solution performance
Understand the performance differentials of strategies of master trusts and GPPs. There is a 16 percentage point difference, ranging from 0.9% to 17%, in the year to 30.6.24 between the best- and worst-performing strategies five years after state pension.

4. Incorporate pension performance data via API into your proposition
Add rich data relevant to 18 million consumers to your proposition, enabling better financial outcomes for your customers. Leverage the API into your existing pension apps and portals to understand performance and other metrics and support better member decision-making.

5. Navigate the New Regulatory Landscape
The government's Pensions Investment Review and VFM Framework will fundamentally change how pension decisions are made and evaluated. CAPAdata provides the comprehensive comparative data needed to comply with these new requirements.

6. Support Employers' New Value Assessment Duties
The consultation proposes new legal obligations for employers to regularly assess pension value. CAPAdata provides exactly the standardised metrics and performance comparison tools employers will need to fulfil these obligations.

7. Expose Hidden Performance Disparities
Access authentic performance data through Chain-Linking. Our proprietary chain-linking methodology reveals what members actually experience over time, not just theoretical or point-in-time performance. This unique approach shows the true journey of pension investments through different market conditions. Some default funds have delivered up to 70% growth, while others have struggled to reach 20%—disparities impossible to identify without our chain-linking technology.

8. Protect Against Regulatory Sanctions
As the government shifts from cost to value focus, organisations without data-driven selection processes face increasing regulatory risk. CAPAdata provides the audit trail regulators expect.

9. Transform Fiduciary Decision-Making
With DC trustees set to be regulated by The Pensions Regulator and executive accountability for pension outcomes likely to increase, decision-makers need comprehensive data. CAPAdata empowers these fiduciaries with the evidence they need to fulfil their obligations.

10. Validate Provider Selection as Consolidation Accelerates
The market is rapidly consolidating toward fewer, larger providers. CAPAdata allows you to objectively evaluate whether your current provider will remain competitive in this changing landscape.

11. Strengthen Employee Value Proposition
In a competitive talent market, demonstrating commitment to employee financial wellbeing is crucial. Using CAPAdata to optimise your pension offering shows employees you're serious about their retirement outcomes.

12. Support small pot consolidation
Help employers and individuals understand which providers are offering value to support consolidation exercises.

13. Contextualise the Impact of Fees on Performance
Minor differences in fee structures compound dramatically over decades. CAPAdata's performance metrics, downloadable in CSV format, allow you to evaluate the actual net returns your employees receive or a provider is proposing, when combined with the fee information from your provider. This evidence-based approach helps you understand the true value equation—balancing performance against costs—to maximise retirement outcomes.

14. Prepare for Mandatory Performance Disclosure
The VfM Framework will increase transparency around provider performance. CAPAdata helps you get ahead of these disclosures, identifying potential issues before they become public.

15. Monitor market trends and inform portfolio construction
Deepen your understanding of the links between performance, risk and asset allocation, supporting default fund design decision-making.

The cost of inaction

Without CAPAdata, your organisation faces:

  • Regulatory Non-Compliance: Inability to meet new statutory requirements for value assessment
  • Legal Exposure: Insufficient documentation to demonstrate proper governance
  • Competitive Disadvantage: Falling behind peers in pension offering quality
  • Employee Dissatisfaction: Potentially delivering suboptimal retirement outcomes
  • Missed Opportunities: Failure to identify superior alternatives in a rapidly evolving market

Why CAPAdata stands alone

CAPAdata is the only solution providing:

  • Complete VFM Framework Alignment: Our metrics directly map to the government's proposed assessment framework
  • Chain-linking Methodology: Unique algorithm that shows actual member experience over time
  • Comprehensive Coverage: Both master trusts and group personal pensions, covering 18 million UK savers
  • Standardised Performance Metrics: True apples-to-apples comparisons across providers
  • Independent Analysis: Free from provider influence or conflicts of interest
  • Regulatory-Ready Reporting: Documentation designed to satisfy compliance requirements

Don't navigate the pension revolution blindfolded

The government's Pensions Investment Review consultation signals the most significant regulatory change to UK workplace pensions since the introduction of auto-enrolment. Organisations without access to comprehensive, independent data will struggle to meet new obligations and deliver value to employees.

CAPAdata gives you the visibility, insights, and documentation needed to navigate pension decisions with confidence in this new era of enhanced scrutiny and accountability.

The high stakes of getting pension decisions right

For Employee Benefits Consultants (EBCs) and Corporate Advisers:

  • New regulatory oversight of pension scheme selection advice per the consultation
  • Explicit requirement to evaluate value, not just cost, when recommending providers
  • Fiduciary responsibility to demonstrate thorough provider due diligence
  • Need for independent, standardised data to justify recommendations
  • Heightened liability risk as employers increase scrutiny of pension outcomes
  • Reputational risk if advised schemes underperform in published VfM assessments

For Employers:

  • £214 billion in assets managed across UK workplace pension schemes
  • 18 million UK savers depending on effective pension management
  • Performance differences of up to 50% between top and bottom providers over 5 years
  • New legal obligations to demonstrate value focus beyond just cost
  • Personal executive liability for poor pension outcomes becoming increasingly likely

For Financial Advisers:

  • Growing regulatory scrutiny of pension transfer and consolidation advice
  • Consumer Duty requirements demanding evidence-based recommendations
  • New potential requirements to justify value-based recommendations
  • Professional indemnity exposure without proper documentation

For FinTechs and Pension Technology Providers:

  • Growing demand for data-driven pension analytics solutions as value assessment becomes mandatory
  • Market consolidation creating need for tools that compare provider performance across portfolios
  • Opportunity to integrate standardised performance metrics into existing platforms
  • Need for independent, verified data sources to power retirement planning tools
  • Rising client expectations for sophisticated comparative analytics
  • Competitive advantage for solutions that align with the new regulatory focus on value
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