Schemes risk giving members a misleading picture of their expected retirement income if they do not factor in life events and choices, such as part-time work, periods of extended leave and tax-free cash, Hymans Robertson warns. 

The consultancy's 'DC provider insights' report, published on Monday, shows investment performance, contributions and retirement age are still crucial for member outcomes but says the industry must not overlook the impact that members behaviours have on retirement adequacy.  

There is still "considerable variation in provider performance" over the five years to 30 June 2026, with differences in growth-asset exposure, portfolio construction and regional equity allocations leading to an annual performance gap of around 7% a year between the best and worst-performing strategies. However, member decisions can have a huge impact on outcomes, says Hymans, calling on the industry to provide more personalised pension support.

“Members are individuals with varied lives, experiences and decisions. The significance of caring responsibilities, career gaps and part-time working must be considered alongside planning for retirement. The impact of these scenarios cannot simply be written off; our analysis shows that a five-year career break could reduce a member’s pension pot by 16%, while working part-time could leave it 13% lower," said Shabna Islam, head of DC provider relations at Hymans. 

“Our findings underline the importance of moving beyond generic pension communications. Employers and trustees should consider targeted engagement, flexible contribution structures and personalised modelling that help members understand the potential consequences of important career and retirement decisions,” she advised. 

Head of DC consulting Kathryn Fleming noted that new scale requirements and the  value for money framework will increase scrutiny on how providers are delivering outcomes for members and supporting retirement adequacy throughout their retirement journey. 

"Scale can help providers access a broader range of investment opportunities and capabilities, but size alone won't determine success. Providers will ultimately be judged on their ability to translate those advantages into better member outcomes," Fleming said.

Schemes should have targeted communications with clearly defined choices and personalised modelling, she suggested. 

"Trustees and employers should truly assess whether their provider's strategy, governance and support journey remain capable of delivering the retirement outcomes members need," she added.