Big ambitions, small steps: Unlocking the potential for UK DC pensions

The market for defined contribution (DC) pensions in the UK has shifted markedly over the last decade, with the growth of master trusts, increasing consolidation and declining charges for members together with the ongoing changes wrought by pension freedoms.

While much has changed, much has stayed the same – the main challenges remain. How do we generate adequate retirement outcomes in a world where contribution rates remain largely the same and on the whole insufficient? How can employers provide more personalised guidance and enhanced support to improve general financial wellbeing and support with delivering good retirement outcomes?

Recent years have seen good intentions, but scant action. However, the picture is changing. Policy focus on investment strategy, adequacy and at-retirement options is driving change. In parallel, we see the potential for AI to transform communication, education and member support. Opportunities are arising for employers to make change happen. With it we see employers looking to move beyond charges, to focus on outcomes and a wider concept of member value.

Here are five key trends emerging from our research and what employers need to do about them.

Final thoughts: What's stopping you from advancing your pension plan strategy?

Increased scale and efficiency have delivered more competitive charges for members. But we have now reached a point where we should question whether employers should look beyond charges to assess true value (investment returns, good service and member engagement).

The findings from the 2026 DC Pensions and Savings Survey point to a clear tension. Employers have strong ambitions to enhance value to employees: to improve retirement outcomes, financial wellbeing and the employee experience. However, delivering meaningfully on this will require a greater focus on investment and decumulation strategies, and more personalised support and guidance for employees. These have been ambitions for employers for the past five years or more. But movement here is slow and actions are failing to match intentions.

How can employers address these challenges? The provider marketplace is developing quickly in these areas, with a wider range of more cost-effective solutions available. We work with many leading companies to solve these problems and provide insight, tools and experience to HR teams. We can help to build a strategy that resonates with your workforce and best uses the budget available.

Footnote

1. "Global Benefits Attitude Survey 2026," WTW. Return to article undo
2. "Global Benefits Attitude Survey 2026," WTW. Return to article undo