Decumulation products within defined contribution (DC) occupational pension schemes: 2025 DC scheme return analysis
This ad-hoc publication analyses decumulation products in occupational DC schemes.
This publication is licensed under the Open Government Licence v3.0 except where otherwise stated. You can view this licence on the national archives site.
Any enquiries regarding this publication should be sent to: EvidenceandInsight@tpr.gov.uk.
Published: 5th March 2026
On this page
- Summary findings
- Purpose and context
- Scope of analysis
- Findings
- Analytical tables
- Detailed methodology
- Glossary of decumulation products
Summary findings
With new guided retirement duties being introduced in the Pension Schemes Bill, this analysis uses data from the 2025 DC scheme return to provide a snapshot of decumulation options available in DC occupational pension schemes.
Data reflects benefits activity reported over a 12-month period, with reporting windows varying by scheme between April 2023 and March 2025.
- Uncrystallised funds pension lump sum (UFPLS) is the most prevalent of all decumulation products. Offered by 43% of schemes and available to 98% of all members, with higher levels of availability, UFPLS accounts for 44% of all members withdrawals and 52% of total assets accessed.
- Drawdown is the decumulation product available to the most members after UFPLS. Although offered by only 16% of schemes, it covers 43% or 13.4 million members. This is driven by larger schemes.
- Over half of schemes (57%) offer at least one decumulation product to members, but these are concentrated in larger schemes. Conversely 43% of schemes offer no decumulation products at all representing 1% of total membership.
- Regular income in-scheme products are less widely available. Just under a quarter (24%) of schemes offer at least one regular income in-scheme product – which provides a member with an ongoing income from their occupation pension – but this covers 55% of members aged over 50. Only 5% of schemes offer two or more regular income in-scheme products and this covers just 10% of all members.
- The largest schemes are more likely to offer at least one regular income in-scheme product. Savers in schemes with 1,000 or more members were more likely to have access to at least one product (44% of schemes) than schemes with fewer than 1000 members (20% of schemes).
Purpose and context
The Pension Schemes Bill, expected to receive Royal Assent in 2026, introduces a new guided retirement duty for DC scheme trustees.
Against this backdrop, an understanding of current decumulation products is essential for monitoring how decumulation offerings and saver access decisions evolve. This analysis provides a baseline of product offerings and usage patterns across DC occupational pension schemes.
Scope of analysis
This analysis examines 420 non-micro DC occupational pensions schemes (excluding hybrids), covering 31 million members between January and December 2025. Data is sourced from our mandatory DC scheme return (as of 1 January 2026).
To understand the current landscape of decumulation options, this analysis reviews all decumulation products currently offered by schemes, with a specific focus on a subset of regular income in-scheme products.
When we refer to all decumulation products, they fall into one of the following three categories. Regular income in-scheme products refer to category 3 only.
- One-off or partial withdrawals: allow members to access part or all of their pension pot, with members remaining in the scheme.
- Annuity-related products: purchase of a guaranteed income (lifetime annuity), either directly by the member or through trustee facilitation.
- Regular income in-scheme products: provide members with an ongoing income from their occupational pension (includes drawdown, direct-self annuitisation and combination products).
Regular income in-scheme products are separately analysed to show availability of decumulation pathways within schemes, beyond UFPLS and partial encashment. Full product classification criteria are provided in the methodology section. Whilst figures for members aged over 50 are used as an indicator of those nearing retirement and reflect existing classifications within our DC scheme return.
Note where we provide figures for members accessing products, members may take more than one decumulation product.
Findings
Decumulation products offered by schemes
- Just under a quarter (24%) of schemes offer at least one regular income in-scheme product:
- 53% of all members are in schemes offering at least one of these products – this represents 16.4 million members.
- 55% of members aged over 50 are in the schemes that provide at least one of these products – this represents 4.6 million members.
- Savers in schemes with 1,000 or more members are more likely to provide at least one regular income in-scheme product (44% of schemes) compared with those in smaller schemes of under 1,000 members (20% of schemes).
- Only 5% of schemes offer two or more regular income in-scheme products, indicating more limited product diversity.
- 10% of all members are in schemes offering two or more of these products.
- 11% of members aged over 50 are in schemes offering two or more of these products.
- Over half of schemes (57%) offer at least one of any of the decumulation products included in this analysis.
- Schemes of 5,000 or more members are most likely to offer a decumulation product (86% of schemes) compared to those in smaller schemes with fewer than 1,000 members (51% of schemes).
- Although 43% of the schemes do not offer any decumulation products to their members, these are primarily the smaller schemes (54% of small schemes).
- Less than 1% of all members have no access to any decumulation products.
- Uncrystallised funds pension lump sum (UFPLS) is the most widely offered product: 43% of schemes offer this product, covering 98% of all members.
- There is a clear trend with larger schemes (1,000 or more members) being more likely to offer UFPLS than smaller schemes (fewer than 1,000 members).
- Other frequently offered decumulation products are:
- lifetime annuities facilitated by a trustee (21% of schemes, representing only 1% of members).
- annuity facilitation (20% of schemes, representing 9% of members).
- partial encashment (17% of schemes, representing 9% of members).
- drawdown (16% of schemes, representing 43% of members)
- Although drawdown is offered by only 16% of schemes, 13.4 million members have access to this product, driven by larger schemes.
- There is also a trend with smaller schemes (fewer than 1,000 members) being more likely to offer a lifetime annuity through trustee facilitation than larger schemes.
Decumulation products accessed by members
- UFPLS accounts for the largest share of member accessing their pensions.
44% of members accessing their pensions via UFPLS.- but take-up should be considered in the context of the products most made available by schemes, as members can only select products offered.
- Following UFPLS, drawdown is the product most frequently accessed by members (36% of members).
Assets accessed by decumulation product type
- UFPLS accounts for over half of the total assets accessed (52%), making it the option through which members access the largest share of retirement funds (£901 million).
This was followed by drawdown with 27% of assets accessed (£468 million). - Assets accessed should be considered in the context that members can only access the products most made available by schemes.
- Members in smaller schemes who access UFPLS received on average £36,000 compared to £11,000 for members in the largest schemes.
- Similarly, members accessing drawdown in smaller schemes received on average £110,000, compared to £7,000 in the largest schemes.
Analytical tables
To reduce the risk of disclosing identifiable scheme data, figures have been rounded as follows:
- Scheme numbers are rounded to the nearest 10.
- Membership figures are rounded to the nearest 1,000.
- Asset values are rounded to the nearest £1 million.
- Percentages are rounded to the nearest 1%.
Scheme numbers, membership figures and asset values below these thresholds are marked as **.
Please note that total figures may not match the sum of the component values, as totals are calculated prior to rounding individual figures.
Section 1: Regular income in-scheme decumulation products
Section 1 presents the proportion of schemes, total membership, and members aged over 50 that are in schemes offering at least one regular income in‑scheme product. These percentages are calculated by dividing the relevant counts in each membership‑size group by the total counts for that group.
Table 1.1: Schemes offering at least one regular income in-scheme product, by membership size and membership age
|
Membership size group
|
Proportion of schemes
|
Proportion of total membership
|
Proportion of membership aged over 50
|
|---|---|---|---|
|
A: 12 to 99
|
18%
|
22%
|
21%
|
|
B: 100 to 999
|
26%
|
26%
|
31%
|
|
C: 1000 to 4999
|
42%
|
41%
|
45%
|
|
D: 5000+
|
45%
|
53%
|
55%
|
|
All schemes (12 – 5000+)
|
24%
|
53%
|
55%
|
|
Total
|
420 (n)
|
31, 044 ('000)
|
8,491 ('000)
|
Table 1.2: Schemes offering two or more regular income in-scheme product, by membership size and membership age
|
Membership size group
|
Proportion of schemes
|
Proportion of total membership
|
Proportion of membership aged over 50
|
|---|---|---|---|
|
A: 12 to 99
|
4%
|
5%
|
6%
|
|
B: 100 to 999
|
5%
|
3%
|
4%
|
|
C: 1000 to 4999
|
0%
|
0%
|
0%
|
|
D: 5000+
|
12%
|
10%
|
11%
|
|
All schemes (12 – 5000+)
|
5%
|
10%
|
11%
|
|
Total
|
420 (n)
|
31,044 (‘000)
|
8,491 (‘000)
|
Section 2: All decumulation products
The percentages in Section 2 are calculated within each membership‑size group. For each group, the table shows the share of:
- schemes offering each product (Table 2.1)
- members in schemes offering each product (Table 2.2)
- member‑product access counts across products (Table 2.3)
- assets accessed across products (Table 2.4)
Table 2.1: All decumulation product offering by scheme size (% of schemes)
|
|
12 to 99
|
100 to 999
|
1,000 to 4,999
|
5,000+
|
Total
|
|---|---|---|---|---|---|
|
UFPLS
|
30%
|
58%
|
81%
|
75%
|
43%
|
|
Lifetime Annuity Trustees
|
24%
|
26%
|
12%
|
5%
|
21%
|
|
Annuity Facilitation
|
16%
|
18%
|
38%
|
32%
|
20%
|
|
Partial Encashment
|
13%
|
27%
|
19%
|
27%
|
17%
|
|
Drawdown
|
13%
|
21%
|
0%
|
30%
|
16%
|
|
Combination Product
|
3%
|
3%
|
15%
|
7%
|
4%
|
|
Direct Self Annuitisation
|
3%
|
3%
|
4%
|
2%
|
3%
|
|
Other Basis
|
3%
|
5%
|
23%
|
18%
|
6%
|
|
Decumulation product offered
|
46%
|
69%
|
85%
|
86%
|
57%
|
|
No decumulation product offered
|
54%
|
31%
|
15%
|
14%
|
43%
|
|
Total DC schemes
|
280
|
60
|
30
|
60
|
420
|
Table 2.2: Member access to decumulation products by scheme size (% of members)
|
|
12 to 99
|
100 to 999
|
1,000 to 4,999
|
5,000+
|
Total
|
|---|---|---|---|---|---|
|
UFPLS
|
36%
|
60%
|
82%
|
98%
|
98%
|
|
Drawdown
|
18%
|
21%
|
0%
|
43%
|
43%
|
|
Partial Encashment
|
13%
|
30%
|
21%
|
8%
|
9%
|
|
Annuity Facilitation
|
15%
|
17%
|
39%
|
9%
|
9%
|
|
Combination Product
|
4%
|
2%
|
13%
|
8%
|
8%
|
|
Lifetime Annuity Trustees
|
33%
|
20%
|
18%
|
1%
|
1%
|
|
Direct Self Annuitisation
|
3%
|
2%
|
7%
|
<0.5%
|
<0.5%
|
|
Other Basis
|
2%
|
5%
|
21%
|
12%
|
12%
|
|
No decumulation product offered
|
47%
|
33%
|
13%
|
<0.5%
|
1%
|
|
Total DC scheme membership (‘000)
|
10
|
23
|
65
|
30,946
|
31,044
|
Table 2.3: Member usage of decumulation products by scheme size (% of members accessing)
For Table 2.3, schemes report number of members receiving each product. The total row in the table reflects all member‑product access total, not unique individuals, as members may appear in more than one product category.
|
|
12 to 99
|
100 to 999
|
1,000 to 4,999
|
5,000+
|
Total
|
|---|---|---|---|---|---|
|
UFPLS
|
27%
|
63%
|
51%
|
44%
|
44%
|
|
Drawdown
|
21%
|
13%
|
0%
|
36%
|
36%
|
|
Partial Encashment
|
3%
|
4%
|
9%
|
4%
|
4%
|
|
Annuity Facilitation
|
1%
|
1%
|
2%
|
1%
|
1%
|
|
Lifetime Annuity Trustees
|
25%
|
11%
|
0%
|
0%
|
<0.5%
|
|
Direct Self Annuitisation
|
1%
|
0%
|
0%
|
0%
|
<0.5%
|
|
Combination Product
|
0%
|
0%
|
0%
|
<0.5%
|
<0.5%
|
|
Other Basis
|
23%
|
7%
|
39%
|
14%
|
14%
|
|
Total members accessing product (‘000)
|
**
|
**
|
1
|
176
|
177
|
Table 2.4: Assets accessed by decumulation product and scheme size (% of total assets accessed)
|
|
12 to 99
|
100 to 999
|
1,000 to 4,999
|
5,000+
|
Total
|
|---|---|---|---|---|---|
|
UFPLS
|
15%
|
32%
|
57%
|
52%
|
52%
|
|
Drawdown
|
34%
|
27%
|
0%
|
27%
|
27%
|
|
Annuity Facilitation
|
1%
|
3%
|
7%
|
7%
|
7%
|
|
Partial Encashment
|
1%
|
4%
|
26%
|
6%
|
6%
|
|
Lifetime Annuity Trustees
|
8%
|
15%
|
0%
|
0%
|
<0.5%
|
|
Direct Self Annuitisation
|
3%
|
0%
|
0%
|
0%
|
<0.5%
|
|
Combination Product
|
0%
|
0%
|
0%
|
<0.5%
|
<0.5%
|
|
Other Basis
|
38%
|
20%
|
10%
|
8%
|
8%
|
|
Total value of assets accessed (m)
|
£24m
|
£14m
|
£14m
|
£1,689m
|
£1,742m
|
Detailed methodology
Data
Data for this analysis is sourced from our mandatory DC scheme return as of 1 January 2026. This publication covers 420 non-micro occupational DC schemes (excluding hybrid schemes). Where a scheme is sectionalised or segregated, each section will be treated as if it were a separate scheme.
Schemes are segmented by membership size into four categories: 12-99, 100-999, 1,000-4,999 and 5,000+.
Decumulation definitions
From the 2024 DC scheme return, schemes were asked to provide enhanced information on benefit details. This publication draws on responses to the 2025 DC scheme return.
Schemes report benefit details for the 12 months up to the effective date of their latest membership data, and this effective date varies by scheme. For the 2025 return, that effective date can fall anywhere between 1 April 2023 and 31 March 2025, so the benefit information reflects the 12 months prior to those dates rather than a single calendar year.
On providing information about benefit details, schemes were asked to classify decumulation products under eight options. For this analysis we have grouped these options into three classifications as follows.
1. One-off or partial withdrawals
These products allow members to access part or all of their pension pot as one-off payments while remaining in the scheme:
- Uncrystallised funds lump sum (UFPLS).
- Partial encashment.
These do not include one-off access products or products where the members would need to leave the scheme to receive the product in the insurance market.
2. Annuity-related products
These involve using pension savings to purchase a guaranteed income, typically resulting in the member leaving the scheme after the purchase:
- Purchase of a lifetime annuity in the name of the trustees.
- Scheme facilitated annuity purchase.
3. Regular income in-scheme products
These are regular income decumulation products delivered in-scheme, and they provide members with an ongoing income pathway within their occupational pension. The included options are:
- drawdown
- direct self-annuitisation (scheme pension)
- combination product
- other basis (captured responses that did not fit into the above classifications)
Figures for members aged over 50 are used as an indicator of those nearing retirement and reflect existing classifications within the dataset.
Analysis is stratified by membership size to examine how product availability and usage vary by scheme size.
Data limitations
This analysis uses administrative data self-reported by schemes through the DC scheme return. Potential source of variation include:
- schemes entering data incorrectly as part of their scheme return
- data processing while creating structured datasets from the scheme return. input, including any manual corrections
- mistakes in the programming code used to analyse the data and produce the statistics, and by analysts interpreting the data incorrectly
Product classification ambiguity
As the in-scheme occupational decumulation market continues to evolve, the way terms are used and interpreted may change. This increases the risk that those responding to our scheme return interpret product categories differently. For example, some 'other basis' responses or annuity‑related responses may reflect broader or alternative interpretations of the benefit categories.
Glossary of Decumulation products
Lifetime annuity (trustees)
The scheme allows for the purchase of a lifetime annuity in the name of the trustees.
Annuity facilitation
The scheme facilitates members’ purchase of annuities.
Direct self-annuitisation (scheme pension)
The scheme allows for the payment of a scheme pension directly from the fund as self-annuitisation.
Uncrystallised funds pension lump sum (UFPLS)
The scheme allows for uncrystallised funds pension lump sum.
An UFPLS is a lump sum taken from funds that have not yet been used to provide other retirement benefits, such as scheme pension or drawdown.
Drawdown
The scheme allows members or dependants to receive an income drawdown directly from the scheme.
Drawdown pension is where a member draws an income from the scheme while leaving the funds invested. It is also known as income drawdown. This includes members who are taking their drawdown pension directly from the scheme itself. This does not include members who transfer their pot to another scheme, for example a self-invested personal pension (SIPP), and take drawdown from that scheme.
Partial encashment
The scheme allows members or dependents to partially encash their savings.
Combination product
The scheme allows members or dependents to take a combination of benefits as one product.
Other basis
The scheme allows members or dependants to take benefits on any other basis.