The Pensions and Lifetime Savings Association (PLSA) will introduce a Retirement Quality Mark (RQM) later this year, it has announced.
The RQM will help savers make informed decisions and build confidence in pensions and retirement savings. It will also support trustees to guide scheme members towards the best quality in-retirement benefits.
Product providers hoping to achieve the accolade will need to prove they meet good governance, communication and investment standards.
The announcement follows a consultation by the PLSA's Pensions Quality Mark (PQM) board, which explored whether in-retirement benefit providers need a new accolade following the introduction of pension freedoms in April 2015.
The consultation, which ran from November 2015 to January 2016, received 19 responses from a cross-section of master trusts, single employer schemes, providers, advisers and industry bodies.
The RQM would be designed to cover drawdown and uncrystallised funds pension lump sums (UFPLS), with the PQM board considering a different set of standards for annuities.
A majority of respondents also agreed that oversight of issues relating to the RQM should sit with independent governance committees (IGCs). For at-retirement only providers, which are not required to have IGCs, an IGC-equivalent body should be set up.
PQM executive director Joanne Segars, also chief executive of the PLSA, said the RQM would help savers identify the best products.
She said: "Savers and those guiding them need help to understand what good looks like in this new breed of retirement income products. They need reassurance that high quality governance will focus on value for money, there is an appropriate default investment strategy in place, and that savers will receive high quality communications throughout their retirement.
"We believe that developing a set of clear and recognisable quality standards for retirement income solutions that people can trust will help product providers to develop the type of products savers need and help savers to make sense of the new choices they face."
Board chair Adrian Boulding welcomed the responses to the consultation.
"The board has been greatly encouraged by the strong support from across the industry for an RQM and the useful role it could play in steering savers towards a good quality product at retirement, while also helping scheme trustees and employers in their roles."
He added the board will refine the proposed standards based on the consultation responses, with an eye to introduce the RQM later this summer.
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