The proportion of employees with a workplace pension rose slightly between 2021 and 2024, from 79 per cent to 82 per cent, with participation trends stabilising following years of growth after the introduction of auto-enrolment, figures from the Office for National Statistics (ONS) have shown.

In 2024, around a third (34 per cent) were members of defined benefit (DB) schemes, down from 36 per cent in 2021 and 45 per cent in 2015.

Almost two-thirds (65 per cent) were in defined contribution (DC) schemes, including 25 per cent that were in group schemes.

The ONS data revealed that 1.4 million people were added to the pension saving system between 2021 and 2024.

However, the data highlighted the continued gender pensions gap, with 76 per cent of female employees in the private sector having a workplace pension compared to 81 per cent of male employees.

In the public sector, the same proportion of women and men had a workplace pension (90 per cent).

“It’s encouraging that more than eight in 10 employees are now saving into a workplace pension, underlining the lasting impact of auto-enrolment in bringing millions into retirement saving,” commented Broadstone head of DC proposition, Kelly Parsons.

“However, with participation rates now largely stabilising, the next challenge is ensuring people are saving enough.

“The continued shift away from DB schemes towards DC arrangements places greater responsibility on individuals to build adequate retirement pots, making contribution levels and engagement increasingly important.

“While auto-enrolment has helped bring many more women into pension saving, these figures show that a participation gap remains in the private sector, moreover, one in five workers don’t have any pension provision at all.

“Closing that gap will require more targeted support and engagement with groups who are more likely to fall outside the system or contribute less."

Hymans Robertson head of DC corporate consulting, Hannah English, said it was important that employers understood how their contributions would support employees’ outcomes.

“The data highlights that the median employer contributions for females and males in private sector schemes are 5 per cent and 6 per cent respectively,” she continued.

“While the disparity between males and females is disappointing, it’s promising that these appear higher than auto-enrolment minimums.

“However, assuming staff are only paying similar rates may not mean all savers will be able to achieve an adequate income in retirement. This could lead to workforce planning issues if not understood.”

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