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.

In its latest paper, UK DC pensions in 2026: from participation to outcomes, the consultancy said that automatic enrolment (AE) had successfully brought millions more people into workplace pension saving, but warned that participation alone would not deliver adequate retirement incomes.

The report noted that around half of workers were contributing only at the AE minimum, while disparities in pension outcomes remained evident across gender, ethnicity, disability, working patterns and caring responsibilities.

Hymans Robertson argued that employers and trustees needed to review scheme design more closely, including contribution structures, pension eligibility, targeted support, and the interaction between retirement saving and wider financial wellbeing.

It warned that simply increasing contribution rates could create unintended consequences, including higher opt-out rates and additional pressure on lower-paid workers.

Instead, employers were increasingly considering measures such as earlier pension eligibility, contribution matching, enhanced contributions for specific groups and more inclusive designs for part-time employees.

The report also highlighted the need to consider pensions alongside housing costs, debt, childcare and short-term savings.

Hymans Robertson stressed that improving retirement outcomes was not always the same as maximising pension contributions, particularly for younger workers balancing pension saving with building emergency reserves or saving for a house deposit.

It pointed to growing interest in pension-adjacent emergency savings accounts, or 'sidecar savings', which allow employees to build accessible savings alongside their pension.

Meanwhile, retirement support was identified as another key area of development, with the report describing retirement as the “new frontier” for DC innovation.

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.

Indeed, its 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 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, and the commercial impact on their businesses if this is not the case.

“Employers that take a holistic, long-term approach will be best placed to improve member outcomes while balancing affordability and sustainability,” she added.

Hymans Robertson head of DC consulting, Kathryn Fleming, warned that many workers still faced inadequate retirement savings despite record participation.

“While automatic enrolment has been a significant success story, participation alone does not guarantee a good standard of living in retirement," she said.

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.”

---