Marvin OnumonuThe Pensions Regulator (TPR) published its annual overview of the occupational defined benefit (DB) and hybrid scheme market in the UK, finding the market continued to shrink at around 3% a year, with more schemes closing and most now closed to new members or future accrual.
There were 200 public sector schemes with 19,784,000 members and 5,060 private sector schemes with 9,174,000 members.
The percentage of schemes closed to future accrual rose slightly from 73% in 2024 to 74% in 2025.
Membership in private defined benefit and hybrid schemes fell 3% over the year.
The number of members in schemes closed to future accruals dropped 4%, from 5,656,000 in 2024 to 5,413,000 in 2025.
Funding levels held steady, with technical provisions at 118%.
Both assets and liabilities fell 10%.
The share of schemes in surplus was 82% in 2025, up from 80% in 2024.
Pensioner and deferred members in private schemes were nearly equal, at 47% and 46% of total members.
Chris Rice, head of trustee services at Broadstone, said: “TPR’s annual review of the occupational DB market continues to show that this a shrinking market, albeit at a relatively slow pace with private DB and hybrid scheme membership down 3% over the last year.
“The vast majority of private DB schemes are now closed either to new members or future accruals with 5% also in the process of winding up.
“The regulator’s review also shows the continued strength of funding on a technical provisions basis with more than four in five schemes now in surplus so it is little surprise that the bulk purchase annuity market has been so buoyant in recent years.”
Rice added: “With more than 9 million members still in over 5,000 private DB schemes, it is clear that the pensions risk transfer market is set to remain highly active for many years to come as trustees look to secure their members’ benefits.”
