Zarah ChoudharyThe Pensions Regulator has published its Occupational Defined Contribution (DC) Landscape Report 2024, showing a 25% increase in total DC scheme assets, excluding micro and hybrid schemes.
Assets rose from £164bn in 2023 to £205bn in 2024, driven by contributions and investment returns.
Assets per member also increased from £6,000 to £7,000, a 17% rise.
The number of non-micro DC and hybrid schemes has declined by 15% over the past year, from 1,080 in 2023 to 920 in 2024, continuing the trend of consolidation.
The rate of decline is higher than the 11% drop recorded the previous year, and the number of non-micro DC schemes has now fallen below 1,000.
Master trusts continue to dominate the sector, holding 91% of non-micro DC and hybrid memberships and 81% of DC scheme assets.
They now manage 28 million memberships and £166bn in assets.
Overall DC scheme memberships have grown by 6% since 2023, reaching 30.6 million in 2024.
Growth has slowed compared to the 11% increase between 2022 and 2023, but total memberships have expanded thirteen-fold since 2011, when they stood at 2.3 million.
Hybrid DC schemes account for £62bn, or 23% of total DC assets, which amount to £267bn when hybrid assets are included.
Damon Hopkins, head of DC Workplace savings at Broadstone, said: “TPR’s findings highlight a positive trend, with rising contributions, investment returns, and scheme memberships – especially encouraging given the cost-of-living challenges in 2024 which could have derailed pension contribution levels.
“Moreover, the transition from own-trust schemes to master trusts seems to be picking up pace, with the number of non-micro DC and hybrid schemes decreasing by a significant 15% over the last year, in a boost for the government’s consolidation ambitions.
“But as more individuals rely on DC savings for retirement, the focus must remain firmly on ensuring members have the right support and decumulation options.”
Hopkins added: “In 2025, scheme trustees and employers must build on the progress made over the past year, strengthening pension engagement and financial education to emphasise the value of early contributions and support members on their journey to retirement.
“At the same time, schemes must refine their investment approaches, balancing sustainability, regulatory developments, and member outcomes while continuously evolving default strategies to secure better long-term results.”
