Hymans Robertson launches latest DC provider report. The firm reviewed how each pension provider is positioned in a market which has seen a backdrop of huge change for both the industry, and the wider economy, over the past year. The report analysed the impact on schemes of geopolitical tensions, fluctuating interest rates and uneven global economic recovery as well as significant legislative developments over 2025.
Set against this background, in their report, the firm warns that there has never been a more important time to truly understand the different approaches taken by DC providers, with developments in their default strategies progressing all the time. The report examines three sample members at different points in their retirement journey, and considers how their retirement outcomes have changed, and benefitted from market conditions, over the last five years. The firm believes that, looking ahead, DC providers will be increasingly competing to showcase their capabilities and ensure they stand out.
Commenting on the changing DC provider market and what this means for members, Shabna Islam, Head of DC Provider Relations, Hymans Robertson, says: “The launch of the Pension Schemes Bill, and the new Pensions Commission, marked a huge turning point for workplace pensions. They highlight the attention on pensions from the current government, as part of a wider movement towards long-term value, particularly for DC savers. The government is clear that they believe taking advantage of scale is the main source of delivering better value, stronger governance and ultimately – and most importantly - better long-term outcomes for savers. We expect more employers to support the shift across the industry from focusing on cost to a movement towards long term value.
“Looking back over the last decade, scale has not necessarily always led to better investment performance with many of the larger providers erring on the side of caution. However, it was the smaller providers, often pursuing a higher growth-oriented strategy, who benefited from stronger returns. Economic and political events over the last few years have shown that members can withstand market volatility in pursuit of higher returns.
“In general, since 2023, members at all stages of their retirement journey have benefited from more favourable market conditions and better outcomes. Our report examines what the past five years have meant and how this has particularly helped members closer to retirement. Looking ahead, we anticipate significant market developments with the introduction of private market assets and greater divergence with higher private market allocations. Providers will be competing to showcase their capabilities within the market, and deliver the best outcomes for their members, yet it is clear that the success rate will vary.”
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