The UK’s workplace savings market is gaining momentum, with an increasing number of pension providers offering savings options alongside traditional defined contribution (DC) pensions.
This is one of the key finding in Corporate Adviser’s latest Workplace Savings Report — which found growth is being fuelled by demand from employees, and increasing employer recognition of the importance of financial wellbeing.
TO REQUEST A COPY OF CORPORATE ADVISER’S WORKPLACE SAVINGS REPORT 2024 CLICK HERE
Of the more than 20 multi-employer pension providers operating in the UK, eight now offer workplace savings products. While total workplace savings remain small compared to DC pensions, these providers have seen significant growth in both membership numbers and assets saved.
The report found that the market is dominated by two key players —Hargreaves Lansdown and Fidelity — who hold more than 90 per cent of workplace Individual Savings Account assets. Hargreaves Lansdown alone now has more than £1 billion in workplace ISA assets.
Despite the dominance of these two providers, new entrants like NatWest Cushon making significant inroads. Over the past five years, the provider has grown its workplace Isa book from £9m in June 2019 to £99m in June 2024 and has recently partnered with Standard Life to offer workplace savings functionality to the insurer’s pension customers.
The report also highlights the role of Lifetime Isas within workplace savings platforms, though their adoption remains limited, with only Hargreaves Lansdown and NatWest Cushon currently publish figures on the scale of their Lifetime Isa holdings.
However, there is strong support from employers for initiatives that provide employees with greater financial flexibility, particularly for younger employees who are saving to buy their first home.
TO REQUEST A COPY OF CORPORATE ADVISER’S WORKPLACE SAVINGS REPORT 2024 CLICK HERE
