Key findings include:
The DC landscape has been subject to concentration at a faster rate to previous years.
The number of non micro DC and hybrid schemes decreased by 15% over the last year, from 1,080 schemes in 2023 to 920 schemes in 2024, compared to an 11% decrease the previous year. There are now fewer than 1,000 non micro DC schemes.
Master trusts continue to provide for the majority of DC members.
Master trusts hold 28.0 million memberships (91% of non micro DC and hybrid schemes) and £166 billion in assets (81% of DC schemes assets).
DC scheme assets, excluding micro and hybrid schemes, have grown by 25%, from £164 billion in 2023 to £205 billion in 2024.
Growth in assets is driven by a combination of contributions and investment returns.
There has been a stable growth in assets per member, from £6,000 in 2023 to £7,000 in 2024 (17% increase).
DC assets in hybrid schemes amount to £62 billion, this accounts for 23% of total DC assets (£267 billion), including hybrid.
Scheme memberships are now more than 13 times larger than the number of memberships in 2011, with 30.6 million memberships in 2024 compared to 2.3 million in 2011.
Scheme memberships have increased by 6% between 2023 and 2024, compared to 11% between 2022 and 2023.
Master trusts account for 28.0 million (91%) DC memberships, including hybrid schemes.
Commenting on the report, Damon Hopkins, Head of DC Workplace Savings at Broadstone, said: “TPR’s findings highlight a positive trend, with rising contributions, investment returns, and scheme memberships - especially encouraging given the cost-of-living challenges in 2024 which could have derailed pension contribution levels. Moreover, the transition from own-trust schemes to master trusts seems to be picking up pace, with the number of non-micro DC and hybrid schemes decreasing by a significant 15% over the last year, in a boost for the government’s consolidation ambitions.
“But as more individuals rely on DC savings for retirement, the focus must remain firmly on ensuring members have the right support and decumulation options. In 2025, scheme trustees and employers must build on the progress made over the past year, strengthening pension engagement and financial education to emphasise the value of early contributions and support members on their journey to retirement. At the same time, schemes must refine their investment approaches, balancing sustainability, regulatory developments, and member outcomes while continuously evolving default strategies to secure better long-term results.”
TPR Occupational Defined Contribution Landscape 2024
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