Financial advisers recognise the importance of scale as the workplace pensions market consolidates, but providers will need to do more to demonstrate how it translates into better outcomes for members, according to research from People’s Pension.
More than half (51 per cent) of advisers believe scale will become an increasingly important differentiator between workplace pension providers, versus just 8 per cent who disagree. At the same time, only 11 per cent believe smaller providers can continue to compete effectively with larger schemes, underlining the increasingly important role advisers expect scale to play as the market evolves.
However, advisers are looking beyond size alone when assessing DC providers. A quarter (25 per cent) believe scale delivers important operational advantages but does not necessarily translate into better retirement outcomes, while only 9 per cent believe increasing provider scale directly improves member outcomes.
People’s Pension also found that the majority (58 per cent) of advisers say member outcomes and support matter more than cost alone, versus a small minority (12 per cent) who disagree.
Stuart Reid, distribution director for People’s Pension, says: “It’s encouraging to see advisers recognising that scale is becoming increasingly important as schemes consolidate and employers look for providers with the governance, resilience and investment capability to deliver over the long term.”
The research comes as the Pension Schemes Act accelerates the next phase of workplace pension reform, with greater emphasis on consolidation, value for money and improving member outcomes.
Data for the study was conducted on behalf of People’s Pension by Opinium Research from 1 – 8 July 2026 among a nationally representative survey of 200 IFAs.
