TPR calls on trustees to review VfM amid continued DC consolidation
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Defined contribution schemes that do not deliver value should leave the market, the Pensions Regulator has said again. TPR has released new figures showing that the number of DC schemes has fallen to 790, while assets have increased by 22% to reach £249bn. Memberships are up by 7% on last year.
DC trustees are being urged by TPR to review if their scheme presents value for savers. The call comes as the regulator’s 2025 DC landscape report is published, showing the decline of smaller schemes.
Master trusts account for the majority (92%) of DC memberships with 30.1m, and with £208bn they also manage the bulk of DC assets (83%).
“People rightly expect to receive value from their hard-earned retirement savings. As we move towards a market of fewer larger schemes, master trusts now dominate. We believe that larger schemes are better placed to deliver value for money, including stronger investment returns and better service,” said TPR’s executive director of strategy, policy and analysis, Richard Knox.
“The current pension schemes bill will speed up market dynamics. In the new pensions world, we urge pension trustees of smaller schemes, in particular, to review their scheme today. Those that cannot match the stronger performers should consolidate out of the market and transfer savers to a better value scheme,” he added.
TPR recently said consultants should not exclude master trusts from their selection lists based on size, claiming smaller ones could still meet the government’s threshold of £25bn for default options.
Is the government piggy-backing on what the market is doing anyway?
