This is an ad-hoc publication of decumulation products in occupational DC schemes aiming to inform an impact assessment of potential legislation in decumulation. This publication is licensed under the Open Government Licence v3.0 except where otherwise stated.
You can view this licence on the national archives site.
Any enquiries regarding this publication should be sent to: TPRSurveys@tpr.gov.uk
Published: 21 May 2024
Background
Headlines
160 schemes are currently offering decumulation products within the scheme. These schemes have coverage of 625,000 memberships. Of these 160 schemes, over half (90 schemes) have less than 100 members.
The most popular product offered is income on any other basis which includes uncrystallised funds and lump sums.
Data
Table 1: Number of schemes segmented by whether they have members accessing decumulation products
Number of schemes
| Scheme size (any other basis) | Has at least one member receiving benefit | Does not have at least one member receiving benefit |
|---|---|---|
| 12 to 99 | 90 | 310 |
| 100 to 999 | 40 | 60 |
| 1,000 to 4,999 | 20 | 20 |
| 5,000 to 24,999 | 10 | 20 |
| 25,000+ | 10 | 10 |
| Total | 160 | 410 |
Table 2: Number of memberships within schemes segmented by whether the schemes have members accessing decumulation products
Number of memberships
| Scheme size (any other basis) | Has at least one member receiving benefit | Does not have at least one member receiving benefit |
|---|---|---|
| 12 to 99 | 4,000 | 11,000 |
| 100 to 999 | 15,000 | 19,000 |
| 1,000 to 4,999 | 37,000 | 65,000 |
| 5,000 to 24,999 | 100,000 | 168,000 |
| 25,000+ | 470,000 | 307,000 |
| Total | 625,000 | 570,000 |
Lifetime annuity tables
Table 3: Number of schemes segmented by whether they have members accessing a lifetime annuity
Number of schemes
| Scheme size (lifetime annuity) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | 20 | 70 |
| 100 to 999 | 10 | 30 |
| 1,000 to 4,999 | ** | 10 |
| 5,000 to 24,999 | 0 | 10 |
| 25,000+ | ** | 10 |
| Total | 40 | 120 |
Table 4: Number of memberships within schemes segmented by whether the schemes have members accessing a lifetime annuity
Number of memberships
| Scheme size (lifetime annuity) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | 1,000 | 3,000 |
| 100 to 999 | 2,000 | 12,000 |
| 1,000 to 4,999 | 10,000 | 27,000 |
| 5,000 to 24,999 | 0 | 100,000 |
| 25,000+ | 56,000 | 413,000 |
| Total | 69,000 | 556,000 |
Self-annuitisation tables
Table 5: Number of schemes segmented by whether they have members accessing a self-annuitisation product
Number of schemes
| Scheme size (self annuitisation) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | 10 | 70 |
| 100 to 999 | ** | 30 |
| 1,000 to 4,999 | 0 | 20 |
| 5,000 to 24,999 | 0 | 10 |
| 25,000+ | 0 | 10 |
| Total | 20 | 140 |
Table 6: Number of memberships within schemes segmented by whether the schemes have members accessing a self-annuitisation product
Number of memberships
| Scheme size (self annuitisation) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | ^^ | 3,000 |
| 100 to 999 | 1,000 | 14,000 |
| 1,000 to 4,999 | 0 | 37,000 |
| 5,000 to 24,999 | 0 | 100,000 |
| 25,000+ | 0 | 470,000 |
| Total | 1,000 | 623,000 |
Drawdown tables
Table 7: Number of schemes segmented by whether they have members accessing a drawdown product
Number of schemes
| Scheme size (drawdown) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | 40 | 50 |
| 100 to 999 | 20 | 20 |
| 1,000 to 4,999 | ** | 10 |
| 5,000 to 24,999 | 0 | 10 |
| 25,000+ | 0 | 10 |
| Total | 60 | 90 |
Table 8: Number of memberships within schemes segmented by whether the schemes have members accessing a drawdown product
Number of memberships
| Scheme size (drawdown) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | 2,000 | 2,000 |
| 100 to 999 | 7,000 | 8,000 |
| 1,000 to 4,999 | 7,000 | 30,000 |
| 5,000 to 24,999 | 0 | 100,000 |
| 25,000+ | 0 | 470,000 |
| Total | 16,000 | 609,000 |
Income on any other basis tables
Table 9: Number of schemes segmented by whether they have members accessing income on any other basis
Number of schemes
| Scheme size (any other basis) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | 30 | 60 |
| 100 to 999 | 20 | 20 |
| 1,000 to 4,999 | 10 | ** |
| 5,000 to 24,999 | 10 | 0 |
| 25,000+ | 10 | 0 |
| Total | 70 | 80 |
Table 10: Number of memberships within schemes segmented by whether the schemes have members accessing income on any other basis
Number of memberships
| Scheme size (any other basis) | Has at least one member receiving benefit | Has at least one member receiving decumulation but not this benefit |
|---|---|---|
| 12 to 99 | 1,000 | 3,000 |
| 100 to 999 | 9,000 | 5,000 |
| 1,000 to 4,999 | 29,000 | 8,000 |
| 5,000 to 24,999 | 100,000 | 0 |
| 25,000+ | 470,000 | 0 |
| Total | 609,000 | 16,000 |
Methodology
The analysis includes occupational DC schemes with 12 or more members. Master trusts, non-registerable and wound up schemes (where a scheme has ceased to exist) are excluded. For a sectionalised or segregated scheme, each section/segregated part is treated as a separate scheme. Only schemes with pensioner members are included. This only considers products offered for pensioner members within the scheme itself and does not consider products accessed outside the scheme or products offered by schemes with only active or deferred members.
The data is from TPR’s annual scheme return as of 1 January 2024.
580 schemes are in scope for the analysis. Of those, there are 410 schemes with no members currently receiving benefits from the scheme. This could be driven by any of three reasons:
- The scheme does not offer any decumulation products.
- The scheme does offer decumulation products, but no pensioner member is currently accessing them.
- The scheme didn’t answer the relevant question within the ‘Benefit details’ section of scheme return. This section is only answered by schemes with pensioner members.
To prevent the risk of giving identifiable scheme data, we have rounded the figures based on the following method:
- scheme numbers are rounded to the nearest 10 and any figures lower than 5 are marked as **
- membership figures are rounded to the nearest 1,000, and where a figure rounds to lower than 1,000 it is marked as ^^
Please note that total rows may not add up to the sum of the components because totals are calculated before the individual values are rounded.