Pensions UK members expect major change by the 2030s and remain confident the industry will adapt

• 44% of Pensions UK members expect very significant change by 2035. 
• 74% of members believe inadequate outcomes for DC savers will be the biggest concern in the 2030s. 
• 62% of members see technological innovation as the biggest opportunity for the pensions sector in the 2030s. 

The latest report, 2030 Ready: The industry lens, takes a detailed look at these changes, exploring how the sector will adapt, the challenges members anticipate, and the opportunities to deliver better outcomes for savers.

In addition to the member survey numerous industry professionals provided insights for the report.

Change on the horizon

Almost half (44%) of respondents to the member survey, representing both DB and DC sectors, expect very significant change in the industry by 2035 – with over a quarter (28%) expecting to see that within the next five years.

Despite the scale of transformation expected, confidence levels remain high: 77% of responding members are confident the industry will successfully adapt to demographic and economic trends by the 2030s, with one in five (22%) extremely or very confident.

Retirement adequacy

Retirement adequacy was identified as the number one challenge. Three-quarters (74%) of respondents believe inadequate outcomes for DC savers will be the sector’s biggest concern in the 2030s.

Industry experts responding to the results anticipate more people working longer than planned or retiring into relative poverty as DC reliance grows and DB support declines.

Other challenges highlighted include the sustainability of the State Pension and the future of the Triple Lock, alongside pressures from an ageing population and shrinking contributor base. Confidence among younger generations is fragile, with many doubting the long-term availability of the State Pension.

When asked what they would most like to change in the system, 23% pointed to contribution levels, adequacy and automatic enrolment reform. Other priorities included improved defaults and retirement options (15%), political stability and reduced interference (15%), and simplification and clearer communications (15%).

Technology and digital innovation

Technology was seen as the sector’s greatest opportunity, with 62% of respondents highlighting its potential.

Digital tools such as the Pensions Dashboard, AI, and data analytics are expected to support personalised retirement planning, improve engagement, and increase operational efficiency. However, some members also raised concerns. Over a quarter (27%) fear that technology may fail to drive positive behaviour change.

Investment and the economy

Pressure to invest domestically is a concern for 32% of responding members, reflecting the government’s focus on mobilising pension assets to support UK productive finance. At the same time, members see clear opportunities: 28% identified ESG and sustainability as areas of growth, while 30% pointed to the sector’s role in wider economic growth.

Consolidation and preparedness

Consolidation across DB and DC markets is expected to continue, delivering economies of scale, lower fees, and stronger investment strategies.

Members feel largely prepared for change: 88% believe their organisation can respond to major industry shifts by 2030. While only 5% described themselves as fully prepared, 34% were very prepared and nearly half (49%) somewhat prepared. The future of DB schemes remains a concern for 18% of those responding, particularly around skills shortages, over-consolidation, and concentration of risk.

Political considerations

Government interference and political uncertainty were cited as significant risks. Over half (56%) see political uncertainty as a concern for the 2030s, while 17% identified it as their single biggest worry.

Some called out regulation and governance as a particular concern, with many members expressing frustration at inconsistent frameworks and additional complexity that increases costs for schemes and savers.

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said; "Now is the time to get ahead of change and shape the next decade for the pensions sector. Our 2030 Ready: Industry lens report brings together the views of members and wider industry experts, giving a detailed picture of the challenges and opportunities ahead..

“The momentum created by the Pensions Schemes Bill and the Pensions Commission provides a once-in-a-generation opportunity for the industry to support Government in driving change that really works for savers, shaping regulation and championing innovation to make the most of the possibilities ahead.

"We are grateful to our members for the great insights they have shared as part of this process"

ENDS

Methodology

Pensions UK research with 110 members, representing schemes with AUM from under £5m to over £20bn, were interviewed between 7 and 23 May 2025. They represent DB, DC, LGPS, master trusts, single employer, multi-employer and hybrid pension schemes.

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, Senior PR Manager
020 7601 1761 | [email protected]