The number of people with defined benefits pensions continues to decline, according to the latest annual report by The Pensions Regulator.
Its review of UK DB sector shows the sector continues to shrink by around 3 per cent a year. However the report also makes clear there continues to be sustained strength in scheme funding levels.
Overall the TPR datas there were 9.17m members in private DB and hybrid schemes — a fall of 3 per cent over the year. This compares to 19.8m members of public sector DB schemes. These public sector schemes are far larger, with this year’s report covering 200 public sector DB schemes and just over 5,000 private sectors schemes. .
As with previous years, the DB and hybrid landscape continues to contract. TPR said that 74 per cent of these schemes are now closed to future accrual (excluding those in wind-up) — a 1 percentage point increase on last year.
However, when looking at private DB and hybrid schemes, the number of schemes closed to future accrual are decreasing this year for first time: from 5.66m in 2024 to 5.41m in 2005 — a drop of 4 per cent.
When it comes to funding the TPR review shows that the technical provisions (TPs) funding level has stayed the same at 118 per cent. Assets and liabilities both fell by 10 per cent. The percentage of schemes in TPs surplus is 82 per cent in 2025, compared to 80 per cent in 2024.
In private sector schemes, pensioner members now account for 47 per cent of total membership, with deferred members making up a further 46 per cent.
Broadstone head of trustee services Chris Rice says the findings underline a market in slow contraction but strong financial health.
“TPR’s annual review of the occupational DB market continues to show that this is a shrinking market, albeit at a relatively slow pace,” he said. “The vast majority of private DB schemes are now closed either to new members or future accruals, with 5 per cent also in the process of winding up.
“The regulator’s review also shows the continued strength of funding on a technical provisions basis, with more than four in five schemes now in surplus, so it is little surprise that the bulk purchase annuity market has been so buoyant in recent years.”
Rice added that, with more than 9 million members still in over 5,000 private DB schemes, demand for pensions risk transfer is “set to remain highly active for many years to come”.
