DC in focus: Large DC Schemes Analysis 2025

Following a rapidly evolving DC pensions landscape through 2024 and into early 2025, our fifth annual large defined contribution (DC) scheme research is here – with scale emerging as a dominant theme. 

This year, we have once again seen our dataset grow. We have used anonymised data from nine leading DC providers, covering 122 large DC schemes (or large DC sections within a master trust) with combined assets under management (AUM) of just over £157bn. This is compared with the 109 schemes in our 2024 research with combined assets of just under £128bn.

Key findings

Like previous years, we have collected a range of data covering scheme structure, membership characteristics, default investment characteristics, Total Expense Ratio (TER) for the default, and facilitation of at retirement options for members. 

Additionally, this year we requested further detail capturing private assets within default investment strategies, self-select investment usage, retirement behaviours, and member engagement. 

The main findings from our research are: 

• Numbers of large master trusts sections continue to rise
• The average pricing for off-the-shelf default strategies for large schemes has reduced to 0.21%
• The average TERs for the default investment strategies is the lowest we have seen across all types of arrangement – but this will likely change considering the increasing inclusion of private assets 
• Assets invested in self-select funds are proportionately higher in own-trust large schemes
• Drawdown is the most popular default strategy target although current member behaviour is not necessarily aligned
• Member engagement has room for improvement