The number of defined contribution pension schemes in the UK fell 15% to 790 in 2025, according to the latest data from The Pensions Regulator.
There has been a continued shift in the market towards fewer, larger schemes, according to TPR’s DC Landscape report.
The decrease in schemes was primarily driven by those with fewer than 5,000 members exiting the market.
DC pension assets grew by 22% to £249bn in 2025 (2024: £205bn), while the number of members rose by 7%.
Master Trusts now account for the majority of DC members, holding 30.1m memberships (92%) and £208bn in assets (83%).
In the report, the TPR called for DC trustees to review if their schemes still presented value for members.
Richard Knox, executive director of strategy, policy and analysis at The Pensions Regulator, 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.”
The Pensions Regulator is the UK’s statutory body responsible for ensuring the integrity of workplace pensions by making schemes and employers comply with their duties, providing strategic oversight of the pensions market and support innovation to enhance outcomes for savers.
Financial Planning Today Analysis: The latest data from The Pensions Regulator is a good indicator of how regulation can reshape a market which needs reform. The advent of master trust schemes has pushed many DC pension providers to make substantial changes or quit the market and there has been a clear shift towards larger, better run schemes overall. Running a pension scheme is a serious business and given the problems in the past were often related to smaller schemes there has been progress here with pension scheme members likely better protected overall by the emergence of a more modern regime.