Defined contribution workplace pension market study

Document type
Corporate author(s)
Great Britain. Office of Fair Trading
Office of Fair Trading
Date of publication
19 September 2013
Poverty Alleviation Welfare Benefits and Financial Inclusion, Older Adults
Social welfare
Material type

Download (1.3MB )

In January 2013 the OFT launched a market study to investigate whether the defined contribution (DC) workplace pension market is working well for consumers. Overall, the OFT found that competition alone cannot be relied upon to drive value for money for all savers in the DC workplace pension market. This arises from the combination of two factors:

  • The complexity of the product. The complexity makes it difficult to make the right choices about pensions, for individual savers and employers.
  • Employers, who have the responsibility of deciding which pension scheme to choose for their employees, may often lack the capability or the incentive to assess value for money.

The OFT found that these weaknesses had already created a risk of savers losing out in two parts of the market:

  • Old and/or high charging schemes. Around £30 billion of savings in old and/or high charging contract and bundled-trust schemes may not be value for money.
  • Small trust based schemes. Around £10 billion of savings in smaller trust-based schemes are at risk of delivering poor value for money due to low levels of trustee engagement and capability.

In addition, the OFT is concerned that similar problems might occur in the future without measures to improve the governance and scrutiny of pension schemes on behalf of savers and the quality of information available.

Related to Office of Fair Trading

Syrian Vulnerable Person Resettlement (VPR) programme: guidance for local authorities and partners

The government is expanding the existing Syrian Vulnerable Person Resettlement (VPR) Scheme and intends to resettle up to 20,000 Syrians in need of protection during this Parliament. This fact sheet

Letter from the Home Secretary to the Chair of the Advisory Council on the Misuse of Drugs, 27 October 2015

This is a letter from Theresa May, the Home Secretary, to Professor Iversen, the Chair of the Advisory Council on the Misuse of Drugs, dated 27th October 2015. It is a response to recommendations

Counter-extremism strategy

British values are under attack from extremists operating at a pace and scale not before seen. The government will meet this challenge with a new and more assertive approach to defeat extremists. It

The nature of online offending: explored from Crown Prosecution Service case files

Evidence regarding online offenders is limited and there are key gaps in knowledge around offender demographics, backgrounds and criminal careers. However, online offences and offenders are not easily

More items related to this publisher