The Pensions Regulator has published its Occupational Defined Contribution Landscape in the UK 2025 report, showing continued consolidation in the defined contribution (DC) market as smaller schemes exit and master trusts hold most memberships and assets. It is urging DC trustees to assess whether their scheme delivers value for savers and to consolidate out of the market where it does not. DC scheme numbers fell 15% to 790 in 2025, with the decline primarily driven by schemes with fewer than 5,000 memberships leaving the market. Over the same period, assets increased 22% to GBP 249 billion from GBP 205 billion and memberships rose 7%. Master trusts held 30.1 million memberships, representing 92% of members, and GBP 208 billion of assets, representing 83%. Figures cover DC schemes with 12 or more members, with scheme and membership counts including hybrid schemes while asset figures exclude hybrids. Richard Knox, Executive Director for Strategy, Policy and Analysis, linked the trend to the current Pension Schemes Bill, which he said will speed up market dynamics, and reiterated that smaller schemes in particular should consider transferring savers to better value schemes if they cannot match stronger performers.
The Pensions Regulator 2026-03-17
UK's The Pensions Regulator reports DC scheme numbers fall to 790 and urges smaller schemes to consolidate
The Pensions Regulator's 2025 report highlights ongoing consolidation in the UK defined contribution (DC) market, with a 15% decline in scheme numbers and a rise in assets to GBP 249 billion. Master trusts now hold 92% of memberships and 83% of assets. The regulator urges DC trustees to evaluate scheme value and consider consolidation if unable to deliver competitive returns.