Workplace DC assets could see £1 trillion rise by 2046
The median pot in DC schemes were estimated as only £15,400 in 2025, despite the substantial aggregate assets held across the DC system.
For the second year in a row, employees ineligible for Automatic Enrolment outstripped those that were eligible, reaching 12 million and 11.45 million respectively.
In 2025, non-micro-occupational DC and hybrid schemes had 21.3 million deferred memberships compared with 11.4 million active memberships. Deferred memberships represented 65 per cent of the total.
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FCA data has also shown around £567bn of assets under administration in SIPPs in 2024. Separately, almost £1.3 trillion was administered across the wider contract-based DC market, which includes both workplace and individual pensions.
Lower earners were also found to be much more likely to save at minimum levels. Half (48 per cent) of employees earning £10,000 to £20,000 contribute at the AE minimum, compared with 12 per cent of those earning £60,000–£70,000.
Non-advised drawdown has become much more common, and 44 per cent of new drawdown contracts were purchased without advice in 2025, compared with 10 per cent in 2014. Over the same period, the independently advised proportion fell from 81 per cent to 43 per cent.
PPI modelling also projects a gradual increase in active workplace DC savers. The number is expected to rise from around 14.0 million in 2026 to around 14.9 million in 2046, while the number in master trusts increases from around 9.3 million to 10.6 million.
Convenience was also much more commonly considered than other consequences when consolidating. Among recent savers who consolidated their pensions, 78 per cent cited keeping pensions together or easier access, while 32 per cent considered charges, 21 per cent investment choice, and 7 per cent the possible loss of guarantees or safeguarded benefits.
Shantel Okello, PPI policy researcher and lead author of the report, says:
“The DC market is evolving, but growth and greater choice do not necessarily mean better retirement outcomes. Our modelling highlights differences in projected pension pots between age groups, while this year’s report explores how workplace and retail pensions connect and what this means for savers’ choices, costs, and support.
“As the Second Pensions Commission prepares to make its recommendations to government, the PPI is proud to deliver this comprehensive research on the UK DC market to support informed policy development, including for the evolving retail pensions market.”
The PPI’s DC Future Book is sponsored by State Street Investment Management and Scottish Widows.