TPR Data: Master Trusts Dominate DC Market as Smaller Schemes Exit

TPR Press Releases

Published March 17th, 2026

Detected March 17th, 2026

Summary

The Pensions Regulator (TPR) has released data showing a 15% decrease in defined contribution (DC) schemes in 2025, with master trusts now dominating the market. TPR urges smaller schemes that do not deliver value for savers to consolidate.

View original document View source feed page

What changed

The Pensions Regulator (TPR) has published its 2025 DC landscape report, revealing a 15% decline in the number of DC schemes to 790, primarily driven by smaller schemes exiting the market. Despite the decrease in scheme numbers, total assets under management increased by 22% to £249 billion, with master trusts holding the vast majority of memberships and assets. TPR is urging trustees of smaller schemes, in particular, to review their offerings and consider consolidation if they cannot demonstrate value for savers.

This data indicates a significant market shift towards fewer, larger schemes, which TPR believes are better positioned to deliver value for money. Regulated entities, specifically trustees of smaller DC schemes, should assess their scheme's performance and value proposition. Those failing to meet benchmarks are strongly encouraged by TPR to consolidate and transfer savers to more competitive schemes. While this is a data release and not a new regulation, it signals TPR's continued focus on scheme consolidation and value for members, which may inform future regulatory actions or guidance.

What to do next

Review DC scheme performance and value for savers.
Assess the feasibility of consolidation for smaller schemes.
Consider transferring savers to higher-value schemes if performance is insufficient.

Source document (simplified)

Master trusts dominate as smaller schemes continue to exit the defined contribution (DC) market, new TPR data reveals

Ref: PN26-07

Tuesday 17 March 2026
- DC scheme numbers fell by 15% to 790 in 2025.
- Assets increased by 22%, rising from £205 billion to £249 billion.
- Schemes that do not deliver value for savers should consolidate out the market, TPR urges.
The Pensions Regulator (TPR) is calling on DC trustees to review if their scheme presents value for savers, as the shift towards a market of fewer, larger schemes continues, driven by a decline in the number of smaller DC schemes.

TPR’s 2025 DC landscape report published today, shows the number of DC schemes has decreased by 15% to 790 in 2025 – consistent with 2024’s decline when the number of schemes fell below 1,000 for the first time. The decrease in the number of schemes is primarily driven by those with fewer than 5,000 memberships exiting the market.

At the same time, assets have continued to grow – from £205 billion in 2024 to £249 billion in 2025 – an increase of 22%, while memberships are up by 7% on last year.

Master trusts account for the majority of DC members, holding 30.1 million memberships (92%) and £208 billion in assets (83%).

Richard Knox, TPR’s Executive Director, Strategy, Policy and Analysis, said:

“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.

“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.”

Notes for editors

TPR’s Occupational Defined Contribution Landscape in the UK 2025 report, published this morning, is an official statistics publication, which provides an annual overview of the occupational DC and hybrid market, including scheme numbers, memberships and assets.
All figures in our release refer to DC schemes with 12 or more members. Scheme and membership numbers include hybrid schemes, whilst assets figures exclude hybrid schemes.
TPR is the regulator of work-based pension schemes in the UK. Its mission is to protect savers’ money, help to enhance the pensions system, and support innovation in the interests of savers. Our statutory objectives are to:
- protect members’ benefits
- reduce the risk of calls on the Pension Protection Fund
- promote, and improve understanding of, the good administration of work-based pension schemes
- maximise employer compliance with automatic enrolment duties
- minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only)

Press contacts

Lucy Mundy Media Relations Manager pressoffice@tpr.gov.uk 07345 436 086 Out of hours This is for journalists only with a media enquiry. The below number will divert to our on call media officer. pressoffice@tpr.gov.uk 01273 648496