Pensions - Articles - Smaller pension schemes continue to exit the DC market

The Pensions Regulator (TPR) is calling on DC trustees to review if their scheme presents value for savers, as the shift towards a market of fewer, larger schemes continues, driven by a decline in the number of smaller DC schemes. 

The Pensions Regulator’s 2025 DC landscape report published today (Tuesday 17 March 2026), shows the number of DC schemes has decreased by 15% to 790 in 2025 - consistent with 2024’s decline when the number of schemes fell below 1,000 for the first time. The decrease in the number of schemes is primarily driven by those with fewer than 5,000 memberships exiting the market. 

At the same time, assets have continued to grow - from £205 billion in 2024 to £249 billion in 2025 – an increase of 22%, while memberships are up by 7% on last year. 

Master trusts account for the majority of DC members, holding 30.1 million memberships (92%) and £208 billion in assets (83%).  

Richard Knox, TPR’s Executive Director, Strategy, Policy and Analysis, said: “People rightly expect to receive value from their hard-earned retirement savings. As we move towards a market of fewer larger schemes, master trusts now dominate. We believe that larger schemes are better placed to deliver value for money, including stronger investment returns and better service. 

“The current Pension Schemes Bill will speed up market dynamics. In the new pensions world, we urge pension trustees of smaller schemes, in particular, to review their scheme today. Those that cannot match the stronger performers should consolidate out of the market and transfer savers to a better value scheme.”