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Defined contribution pension market consolidation continues, TPR’s latest figures show

Ref: PN22-04

Issued: Thursday 27 January 2022

The UK’s occupational defined contribution (DC) pension market has consolidated by nearly 40% (38.64%) in a decade, according to the latest data from The Pensions Regulator (TPR).

The 12th DC Trust report – TPR’s annual publication showing the number, membership and assets of schemes in the market – shows the number of DC schemes as of December 2021 stood at 27,700, from 45,150 in 2011 and down 2% since the last report, published on 30 March 2021.

The number of master trusts in the market also dropped from 38 to 36, since the last report. However, memberships increased by about 10% from 18.8 million to 20.7 million. Assets in master trusts (excluding hybrid schemes) also increased almost 50% (49.5%) from £52.7 billion to £78.8 billion.

Executive Director of Policy, Analysis and Advice at TPR, David Fairs said: “This continuing trend of consolidation in the DC market is good news for savers.

“The vast majority of DC members continue to be saving into larger, more stable master trusts, which thanks to our authorisation programme, have demonstrated they meet the high standards of governance savers deserve.

“However, every saver deserves to be in a well-run scheme which offers good value for money. We know many small DC schemes are poorly run and we are determined to continue to work with industry to drive up standards of governance and trusteeship.

"We expect this trend of DC consolidation to continue as small schemes are now required to demonstrate that they provide value for members. Where they don’t, we expect them to either wind up or take immediate action to make improvements.”

The report also highlighted:

  • the total amount transferred into DC schemes rose by 134% last year, from £3.7 billion to £8.6 billion – including transfers from defined benefit schemes and other DC occupational and personal schemes
  • average assets per member increased 20% over the past year, compared with a 10% increase the previous year – however, overall, average assets per member have fallen by 70% since the start of 2012
  • this year, the average assets per membership at retirement was £5,100 – a 3% fall since the beginning of last year and a 73% decrease since the beginning of 2015

Notes for editors

  • Data collated from previous DC Trust reports shows the rate of consolidation in the market:
Publication Effective date DC Hybrid Total DC and Hybrid schemes covered by DC Trust publications
2009 - 2010 31/12/2008 54,545 1,333 55,878
2010 - 2011 01/09/2010 45,990 1,050 47,040
2011 - 2012 01/09/2011 44,000 1,150 45,150
2012 - 2013 31/12/2012 38,690 1,050 39,740
2013 - 2014 31/12/2013 37,690 1,050 38,740
2014 - 2015 31/12/2014 36,370 1,010 37,380
2015 - 2016 31/12/2015 34,730 980 35,710
2016 - 2017 31/12/2016 34,500 910 35,410
2017 - 2018 31/12/2017 31,940 840 32,780
2018 - 2019 31/12/2018 31,170 740 31,910
2019 - 2020 31/12/2019 28,810 760 29,570
2020 - 2021 31/12/2020 27,640 720 28,360
2021 - 2022 31/12/2021 27,050 650 27,700
  • The Pensions Regulator is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only).

Press contacts

Dan Menhinnitt

Media Officer
pressoffice@tpr.gov.uk
01273 349511

Matt Adams

Senior Media and Parliamentary Manager
pressoffice@tpr.gov.uk
01273 662086

Out of hours

This is for journalists only with a media enquiry. The below number will divert to our on call media officer.
pressoffice@tpr.gov.uk
01273 648496

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