- Master trusts are leading the way, supporting an estimated 27 million members with retirement decisions ahead of the upcoming duty.
- Over half of schemes who are aware of the new duty are taking action to review their decumulation offer.
- Smaller schemes not doing enough with around 1 in 3 offering only statutory communications.
DC Schemes are taking positive action towards enhancing their at-retirement options for members as they prepare for the proposed guided retirement duty, new research has found.
TPR’s latest DC survey published today, shows schemes are taking steps to review, launch or partner to provide their members with decumulation solutions in advance of the legal duty proposed in the Pension Schemes Bill.
All master trusts offer decumulation options at retirement. But across the rest of the market many do not – three quarters (73%) of DC schemes fail to offer any benefit options at retirement.
Similarly, every master trust – and 98% of both large and medium schemes – surveyed reported they provided support to members with their retirement decisions. However, the survey found nearly a third (31%) of small schemes and 40% of micro schemes offer no support beyond statutory communications.
Now thanks to the Pensions Schemes Bill, just over half (51%) of all schemes who were aware of the proposed duty have started reviewing their decumulation offering. And owing to the pro-active steps master trusts are taking, 91% of all members – equating to around 27 million savers – are now in schemes that are reviewing their decumulation offerings.
Nausicaa Delfas, TPR’s Chief Executive Officer, said: “This survey provides positive indications that the upcoming guided retirement duty to provide default retirement solutions is already starting to transform a savings system into a pensions system, as DC schemes ready themselves for the Pension Schemes Bill.
“Many small and micro schemes, however, are currently not doing enough to prepare for the duty, leaving their members to navigate complex choices alone as they transition into retirement. Schemes that struggle to support savers with their retirement decisions should consider consolidation into schemes that can offer value for money solutions that work for different kinds of savers.”
The survey found that 44% of medium and 35% of large schemes had started the process of consolidation by transferring members into a master trust or planned to do so, compared with only 12% of small and 4% of micro schemes.
Nausicaa Delfas added: “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.
“Our new service, TPR Innovation Support, is available to help schemes discuss early stage ideas as they seek to bring new retirement products to market safely and effectively, and we encourage schemes to engage with us.”
The survey of 200 representatives of DC schemes covered other areas, including value for money, administration and pensions scams.
Notes for editors
- The Defined Contribution trust-based pension schemes research comprised 200 quantitative telephone interviews with representatives of DC schemes, with fieldwork being undertaken in March to May 2025.
- The survey found all master trusts surveyed offer decumulation benefit options, but only 27% of all DC schemes do this (mainly via partnerships rather than in-scheme). This is owing to micro and small schemes accounting for the majority of schemes.
- Awareness of the proposed duty stood at 26%, but this varied widely by scheme size. Every master trust was aware, as were over three-quarters of large (77%) and medium (76%) schemes. In contrast, only 47% of small schemes and 13% of micro schemes were aware of it.
- Of those schemes who were aware of the forthcoming duty, 51% had started reviewing their decumulation offering. This 51% equates to 8% of all schemes.
- 80% of master trusts have reviewed their offer. As master trusts account for the vast majority of members, this means 91% of members overall – approximately 27 million – are in schemes that have reviewed their decumulation offerings.
- Consolidation: One in ten schemes plan to transfer members to a master trust: 9% started or planned this process; highest among medium (44%) and large schemes (35%). Around three-quarters of micro (76%) and half of small (51%) had never considered it.
- Guided retirement places a duty on trustees of DC schemes to offer members default retirement products. Trustees will tailor the transition into retirement through a 'guided retirement' journey based on members' needs, but members will have the option to choose different paths if they prefer.
- TPR is the regulator of work-based pension schemes in the UK. 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)
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