DC Market Shifts Focus to Outcomes

The UK defined contribution (DC) market is entering a new phase as attention shifts from participation towards pension adequacy and member outcomes, according to Hymans Robertson.

From getting people in, to keeping them in

The consultancy’s latest paper, UK DC pensions in 2026: from participation to outcomes, argues that automatic enrolment (AE) has successfully brought millions more people into workplace pension saving. The report notes that around half of workers are contributing only at the AE minimum. Disparities in pension outcomes remain evident across gender, ethnicity, disability, working patterns and caring responsibilities.

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Employers and trustees are increasingly being asked to review scheme design more closely. This includes contribution structures, pension eligibility, targeted support, and the interaction between retirement saving and wider financial wellbeing. Hymans Robertson warned that simply increasing contribution rates could create unintended consequences, including higher opt-out rates and additional pressure on lower-paid workers.

Instead, the focus is shifting toward more inclusive designs for part-time employees and measures such as earlier pension eligibility and contribution matching. The report highlighted the need to consider pensions alongside housing costs, debt, childcare and short-term savings. It pointed to growing interest in pension-adjacent emergency savings accounts, or “sidecar savings,” which allow employees to build accessible savings alongside their pension.

Retirement support was identified as another key area of development, with the report describing retirement as the “new frontier” for DC innovation. Hymans Robertson head of DC corporate consulting, Hannah English, said employers are “increasingly focused” on the outcomes members achieve and whether current approaches are delivering adequate retirement incomes across a diverse workforce. She added that employers that take a holistic, long-term approach will be best placed to improve member outcomes while balancing affordability and sustainability.

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Measuring success by income, not pot size

The research found that 29.3 per cent of respondents considered an income for life the most important feature of a DC default decumulation offering, followed by higher expected income or value at 27.6 per cent. Keeping retirement solutions simple to understand was selected by 15.5 per cent, while stability of income and flexibility or personalisation were each chosen by 13.8 per cent. Hymans Robertson suggested that success should increasingly be measured by the sustainable income a pension could provide throughout retirement, rather than the size of the pot at the point of retirement.

Hymans Robertson head of DC consulting, Kathryn Fleming, noted that pensions dashboards could improve engagement, but would also make the scale of the adequacy problem more visible. “Trustees, employers and providers should use this opportunity to help members understand their position, take informed action and access appropriate support,” she continued. “Better retirement outcomes will depend on a combination of effective scheme design, strong investment strategies, meaningful retirement support, financial wellbeing initiatives and a clear focus on delivering long-term value for members.”