In 2024, for employees who were in a workplace pension scheme, around three in 10 (34%) were members of defined benefit schemes – down from 36% in 2021, and from 45% in 2015 – the earliest data available.
Four in 10 (40%) were members of defined contribution schemes – up from 36% in 2021 and rising from 26% in 2015 (which includes pensions in the National Employment Savings Trust), and 1 in 4 (25%) were in a group scheme.
In the private sector, a gender gap remained in 2024 with 76% of female employees having a workplace pension, compared with 81% of male employees; in the public sector, 90% of male employees and 90% of female employees had a workplace pension.
One in five (19%) workers had either no pension provision or unknown pension provision.
Kelly Parsons, Head of DC Proposition at Broadstone commented: “It’s encouraging that more than eight in ten employees are now saving into a workplace pension, underlining the lasting impact of auto-enrolment in bringing millions into retirement saving.
“However, with participation rates now largely stabilising, the next challenge is ensuring people are saving enough. The continued shift away from defined benefit schemes towards defined contribution arrangements places greater responsibility on individuals to build adequate retirement pots, making contribution levels and engagement increasingly important.
“While auto-enrolment has helped bring many more women into pension saving, these figures show that a participation gap remains in the private sector, moreover, one in five workers don’t have any pension provision at all. Closing that gap will require more targeted support and engagement with groups who are more likely to fall outside the system or contribute less.
“Employers have a crucial role to play here. Well-designed schemes, inclusive contribution structures and better support around key life events such as parental leave can help ensure workplace pensions work for a wider range of employees. Without continued progress, today’s participation gaps risk translating into significant inequalities in retirement.”
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