CLICK HERE TO DOWNLOAD THE BENEFITS EXPERT GUIDE TO WORKPLACE PENSIONS 2025
Younger savers saw an average return of more than 15 percent from their default defined contribution (DC) pensions in 2024, exclusive research has shown.
Funds for younger savers (with 30 years left until state pension age (SPA)), are managed using ‘growth phase strategies’. Over the five years to 31 December 2024, these growth-phase pensions accumulated returns of more than 43 percent (after charges).
Strong pension saver returns were seen across all age groups in 2024 and 2023, according to research from Benefits Expert’s sister publication Corporate Adviser Intelligence. Full results for individual pension provider’s default funds are available in the Benefits Expert Guide to Workplace Pensions 2025, which you can download here.
Further results showed that in 2024, older savers with five years left until SPA saw returns of more than 10 percent in 2024.
Savers about to retire (one day to SPA), saw 7 percent returns, which is well ahead of inflation.
Greater pension scrutiny is coming
This matters because with the government’s ongoing pension reforms, dashboard roll out and performance data becoming publicly available (probably in late 2026), employees will have a clearer view of their retirement savings. Employee engagement with pension savings will increase and they will be asking employers more questions.
For HR and reward teams, this means your pension scheme can no longer sit quietly in the background. It needs to deliver strong value, be clearly communicated, and stand up to scrutiny.
CLICK HERE TO DOWNLOAD THE BENEFITS EXPERT GUIDE TO WORKPLACE PENSIONS 2025
Government reforms, like the Value for Money framework and Pension Schemes Bill are helping to drive this change. As a result providers are consolidating, investment strategies are moving toward private markets and higher-growth assets, and expectations around cost, service, and performance are rising. Employers reliant on legacy or underperforming schemes risk falling behind, not just financially, but in terms of reputation.
The Benefits Expert Guide to Workplace Pensions 2025 is intended to help HR professionals take a strategic view of their pensions within the wider landscape and ensure your workplace pension will remain fit to meet evolving employee expectations.
For the full pension performance results, and to understand how and why the pension landscape is being overhauled, download the latest Benefits Expert Guide to Workplace Pensions 2025.
CLICK HERE TO DOWNLOAD THE BENEFITS EXPERT GUIDE TO WORKPLACE PENSIONS 2025
