New data signals landmark shift from savings system to pensions system – but TPR warns smaller schemes must do more

Ref: PN26-04

Thursday 5 March 2026
- More than 13 million members are in DC schemes offering drawdown
- Ahead of the introduction of guided retirement duty, larger schemes are leading the way in supporting members at retirement
- With over two fifths of DC schemes still offering no decumulation products, TPR urges smaller schemes to act or consolidate in savers’ interests
Millions of defined contribution (DC) savers now have access to in-scheme retirement options, signalling a shift from a savings system to a pension system, new data from The Pensions Regulator (TPR) reveals.

In advance of the introduction of guided retirement duty in the Pension Schemes Bill, TPR’s analysis of the occupational DC market published today, reveals larger schemes are leading the way in supporting members when they come to retire.

Significantly, 13.4 million members are now offered drawdown at the point of retirement – a product not historically available within occupational schemes.

The first-of-its kind-analysis of data from DC scheme returns reveals:

• 86% of the largest schemes offer members at least one retirement income option.
• In contrast, just 46% of small schemes offer members any decumulation product - and two fifths of all schemes offer members none at all.
• 43% of all members – represented by 16% of schemes – can now access drawdown without leaving their schemes. The shift towards in-scheme drawdown is largely driven by the growth of master trusts, which have the scale and governance to make it a reality.

Joey Patel, TPR Director of Policy said:

“These findings herald a transformation in the DC workplace pensions landscape ahead of guided retirement duty, with millions of savers now able to access in-scheme retirement options. This is just the start, however.

“Too many members in smaller schemes are left without support when they reach retirement. This is not good enough.

“We urge trustees to start getting ready for the Pensions Schemes Bill by reviewing their offer and starting to design their decumulation products.

“If you are not able to guide savers into the right retirement options for them, our message is clear: you should consider consolidation into a scheme that can offer value for money solutions.”

As the guided retirement duty takes shape under the Pension Schemes Bill, TPR is working with government and industry to ensure trustees have the clarity and support they need.

Notes for editors

• This analysis, Decumulation Products within Defined Contribution (DC) Occupational Pension Schemes:  2025 DC Scheme Return Analysis, excludes micro and hybrid DC schemes.
  • DC Schemes were segmented by four size categories: 12-99, 100-999, 1,000-4,999 and 5,000+.
  • Small schemes relates to 12 – 99 members and largest schemes relates 5000+ member.
  • For full analysis and methodology see the full report.
• The guided retirement duty in the Pension Schemes Bill will require schemes to provide default retirement solutions and improved support at the point savers access their pension.
• The Pensions Regulator 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

Jackie Stevens Media Officer pressoffice@tpr.gov.uk 01273 349597 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

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