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Strengthening the UK’s defined contribution retirement system: from access to outcomes
30 minute read
Research and commentary

Strengthening the UK’s defined contribution retirement system: from access to outcomes

As defined contribution (DC) workplace pensions become increasingly central to the UK’s retirement system, their success will depend not only on helping people save enough, but also on turning those savings into sustainable retirement income. This paper explores the key policy reforms needed to strengthen DC pensions and improve long-term retirement outcomes.

  • DC pension access has improved, but many savers remain off track for retirement: Only 40%-50% of UK baby boomers are on track to maintain their current standard of living in retirement.
  • Current contribution levels may not be enough: Gradually increasing the minimum contribution of DC pensions from 8% to 12% of qualifying earnings could materially narrow the retirement income gap for middle-income workers.
  • Retirement savings are becoming harder to manage. An estimated 3.3 million lost pension pots worth £31.1 billion were unclaimed in 2024, underlining the importance of making pensions easier to track, transfer and consolidate.

Strengthening the UK’s defined contribution retirement system: from access to outcomes

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