The official statistical release, the 2024 DC landscape shows the number of DC schemes decreasing 15% in 2024 to 920 – under 1,000 for the first time. The drop in the number of schemes is primarily driven by those with fewer than 5,000 memberships.
Driving consolidation in savers’ interests was at the heart of TPR’s three-year Corporate Plan released last year with a regulatory initiative launched to challenge small schemes on the value for money they offer savers.
TPR research shows smaller schemes are more likely to have poorer standards of governance – with a TPR survey of small schemes finding that just 17% were undertaking the required enhanced value for members assessment in 2023.
Nausicaa Delfas, Chief Executive of TPR, said: “Our DC landscape report is further evidence of the evolution towards a pensions market of fewer, larger pension schemes, which we believe are better placed to deliver for savers and drive growth in savers’ interests. Value for money should be the guiding principle that runs through the DC system and where schemes cannot compete with the very best, they should consolidate and exit the market.”
The report also explains the following:
• Members in DC schemes increased 6% from 28.8 million members in 2023 to 30.6 million members in 2024. Active members remained at 11.1 million in 2024, but deferred members increased by 10% from 17.7 million to 19.5 million.
• Master trusts continue to provide for most DC members, holding 28 million memberships (91% of DC and hybrid schemes) and £166 billion in assets (81% of all DC scheme assets).
• DC scheme assets grew 25%, from £164 billion in 2023 to £205 billion in 2024 leading to a stable growth of 17% in assets per member, from £6,000 in 2023 to £7,000 in 2024. This growth in scheme assets was driven by a combination of contributions and investment returns.
As a data-led regulator, TPR continuously improves its statistical publications, and this year reports on micro and hybrid scheme assets for the first time having only reported on assets for DC schemes with more than 12 members previously.
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