The number of defined contribution (DC) pensions schemes decreased by 15% in 2024 to 920, falling below 1,000 for the first time, according to data from The Pensions Regulator (TPR)
Its Occupational defined contribution landscape in the UK 2024 report found that the DC market is continuing to move toward fewer, larger pension schemes.
TPR’s data found that the drop in number of schemes has been primarily driven by those with fewer than 5,000 memberships.
Most members of DC schemes are in master trusts; these account for 28 million members and 91% of DC and hybrid schemes, which combines elements of both defined benefit (DB) and DC schemes.
The report also found that DC scheme membership increased by 6% from 28.8 million members in 2023 to 30.6 million 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.
Since 2011, the number of non-micro schemes (those with more than 12 members) and hybrid schemes has declined by 75% from 3,660 to 920. Since 2011, membership of non-micro and hybrid schemes grew from 2.3 million in 2011 to 30.6 million in 2024.
According to TPR, DC scheme assets grew 25%, from £164 billion in 2023 to £205 billion in 2024, which has lead to a stable growth of 17% in assets per member, from £6,000 in 2023 to £7,000 in 2024. This growth was driven by a combination of contributions and investment returns.
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.pens.”
