2025
9
UK Personal Pensions Market Report 2025
2026-01-02T08:01:15+00:00
REPE64DF9AC_9211_473D_8D53_630D9324AE37
2995
190004
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Report
en_GB
The market outlook for personal pensions is steadily improving. Cost-of-living pressures remain, but are easing. This is creating more room for consumers to consider longer-term financial goals. Indeed, 46% of…
UK
Retirement and Pensions
simple

UK Personal Pensions Market Report 2025

"Growth prospects for personal pensions are improving, with easing pressure on household budgets set to create more room for consumers to consider long-term financial goals."

George Zaborowski, Senior Market Analyst

George Zaborowski, Senior Market Analyst

UK Pensions Industry – Trends and Insights

  • The market outlook for personal pensions is steadily improving. Cost-of-living pressures remain, but are easing. This is creating more room for consumers to consider longer-term financial goals.
  • Almost half of personal pension owners are planning to increase contributions over the next 12 months. Additionally, the upcoming introduction of higher tax rates on dividends and savings interest enhances the appeal of using tax efficient savings products, such as pensions.
  • However, policy uncertainty is currently one of the greatest threats to demand for personal pensions. From April 2027, unused pension assets will be included in a person’s estate for IHT, causing those at the upper-end of the market to re-evaluate how personal pensions fit into their plans. Ongoing changes to pension legislation create compliance complications for personal pension providers and advisers, while also damaging consumer engagement in retirement planning. A more stable regulatory environment is needed to maximise the market potential of personal pensions.
  • The development of digital pension management tools will allow providers to create highly engaging and intuitive personalised guidance services that will help produce best outcomes for pension savers. Providers that adopt these services will be best placed to attract and retain new business.

This Report Looks at the Following Areas:

  • The short-, medium- and long-term impact of the economic and regulatory environment on personal pensions
  • How challenger brands, like MoneyBox and Chest, are attempting to disrupt the personal pension market with technologically advanced app-based platforms
  • The key factors driving the choice of personal pension provider and contribution intentions over the next year
  • Measuring pension consolidation intentions, highlighting the barriers and factors influencing consolidation decisions
  • Insight into how frequently personal pension owners engage with their pensions, as well as their attitudes towards choosing investments and interest in additional guidance from providers.
Report AttributesDetails
Published DateJanuary 2026
Report AuthorGeorge Zaborowski, Senior Market Analyst
Market Data Range2019-2025
Market Forecast2025-2030
Measurement MetricsNumber of individual policies in force (2017-23),
New individual pension premiums in £ (2019-30)
Market SegmentationNew personal pension contracts, New stakeholder pension contracts, New insure SIPP contracts
Consumer Data1,986 internet users aged 18+, August 2025

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  1. EXECUTIVE SUMMARY

    • Opportunities for personal pensions market
    • Personalised guidance that rewards active pension participation can attract and retain customers
    • Introduce or bolster lower fee pension options to entice more customers
    • Pension consolidation set to be an even more significant driver of future growth
    • Market dynamics and outlook
    • Market size & forecast
    • Market predictions
    • Modest but persistent growth in new individual pension premiums expected
    • Total individual pension premiums surged in 2024…
    • Graph 1: total value of new individual personal pension, stakeholder pension and insured SIPP sales, 2018-24
    • …but the number of regular and single premium contracts declined
    • Graph 2: regular premium contracts, by type, 2018-24
    • Graph 3: single premium new contract, by type, 2018-24
    • What consumers want and why
    • Personal pension ownership is underdeveloped
    • Many DC pension owners have consolidated their pension pots or have plans to do so
    • Majority check their personal pension values at least once every six months
    • Graph 4: how often value of personal pension is checked, 2025
    • Low fees are the main focus, but many factors determine provider choice
    • Graph 5: important factors when choosing a personal pension provider, 2025
    • Decision-making independence is prioritised, but owners are open to more guidance
    • Graph 6: attitudes and behaviours towards personal pensions, 2025
    • Innovation and marketing
    • Pension providers are integrating guidance services onto their platforms
    • Interactive investor emphasisess its low-cost advantage
  2. MARKET DYNAMICS

    • Market size
    • Number of individual pensions remains in long-term decline…
    • Graph 7: number of individual policies in force, 2017-23
    • …but total in-force premium income increased in 2023
    • Graph 8: total business in force premium income, 2017-23
    • New individual pension premiums to level off in 2025
    • Graph 9: total new individual pension premiums, 2018-25
    • Rising cost of living and policy uncertainty hold back near-term growth
    • Market forecast
    • Modest but persistent growth in individual pension premiums expected
    • Broader conditions for new individual pension growth are set to improve
    • Market segmentation
    • New regular premium contracts stagnate
    • Graph 10: regular premium contracts, by type, 2018-24
    • New single premium contracts decline further
    • Graph 11: single premium new contract, by type, 2018-24
    • Total individual pension premiums skyrocket by 24%
    • Graph 12: total value of new individual personal pension, stakeholder pension and insured SIPP sales, 2018-24
    • New personal pension transfer business soars
    • Graph 13: value of new personal pension premiums transfers, 2018-24
    • Channels to market
    • Most new personal pension business is undertaken by independent advisers…
    • Graph 14: new individual personal pension business, by sales channel, 2018-24
    • …but restricted advice and non-advised channels remain influential
    • Graph 15: share of new individual personal pension business, by sales channel, 2018-24
    • Non-advised SIPP sales jump in 2024
    • Graph 16: new individual insured SIPP business, by sales channel, 2018-24
    • Non-advised sales most common for stakeholder pensions
    • Graph 17: new individual stakeholder pension business, by sales channel, 2018-24
    • Market drivers
    • The UK is experiencing subdued economic growth
    • Graph 18: CPI inflation rate, 2021-25
    • Consumer financial confidence weakens in second half of 2025
    • Graph 19: financial confidence index, 2020-25
    • Graph 20: financial wellbeing index, 2020-25
    • Ongoing strain on household finances keeps focus on immediate needs
    • High levels of workplace pension participation
    • Graph 21: all employee pension participation rate, 2009-24
    • Self employed workers remain an underserved market segment
    • Graph 22: number of employees and self employed workers (seasonally adjusted), 2000-25
    • Legislative and regulatory changes
    • 2025 Autumn Budget tax grabs indirectly enhance the relative appeal of personal pensions
    • Unused DC pension pots will be exposed to IHT from 6 April 2027
    • Pension Schemes Bill puts more pressure on providers to deliver value for money
    • FCA’s targeted support initiative empowers providers to nudge savers towards better outcomes
    • Public launch of Pensions Dashboard anticipated some time in 2027
    • New FCA initiative aims to modernise digital pension planning tools and pension consolidation
  3. WHAT CONSUMERS WANT AND WHY

    • Pension ownership
    • Most UK adults own a workplace pension
    • Graph 23: pension ownership, 2025
    • Personal pension ownership is underdeveloped
    • Younger generations could propel market growth
    • Pension consolidation
    • Close to a third of DC pension owners plan to consolidate
    • Graph 24: pension consolidation, 2025
    • Easier fund management is the top reason for consolidation
    • Graph 25: reasons for pension consolidation, 2025
    • Improving digital management tools will appeal to younger pension consolidators
    • Graph 26: pension consolidation for access to better digital management tools, by generation
    • Educate consumers on the benefits of pension consolidation
    • Graph 27: barriers to pension consolidation, 2025
    • Personal pension engagement
    • Most owners monitor the value of their personal pensions
    • Graph 28: how often value of personal pension is checked, 2025
    • Pension engagement drops off significantly among over-55s
    • Graph 29: how often value of personal pension is checked, by age, 2025
    • Quality of engagement is more important than frequency
    • Factors when choosing a personal pension provider
    • Low fees are the main focus, but many factors determine provider choice
    • Graph 30: important factors when choosing a personal pension provider, 2025
    • Promote low-cost offerings to meet the preferences of older personal pension owners
    • App-based management and ethical investing key in attracting younger generations
    • Graph 31: importance of ability to manage pension via mobile app, by generation, 2025
    • Graph 32: importance of availability of sustainable/ethical investments, by generation, 2025
    • Bolster personalised advice tools to appeal to Gen Z
    • Attitudes towards personal pensions
    • Decision-making independence is prioritised, but owners are open to more guidance from providers
    • Graph 33: attitudes and behaviours towards personal pensions, 2025
    • Additional guidance strongly appeals to younger generations
    • Graph 34: personal pension owners who would like more guidance from provider, by generation, 2025
    • Strong intentions to contribute to pensions provide opportunities
    • Close to half of personal pension owners under 45 plan to switch providers
  4. INNOVATION AND MARKETING TRENDS

    • Competitive strategies
    • Interactive Investor launches SIPP comparison tool
    • Nutmeg rebrands as J.P. Morgan Personal Investing
    • Cash incentives being used to attract new personal pension business
    • SIPP providers also use referral bonuses to win new customers
    • Launch activity and innovation
    • Santander latest banking brand to enter the personal pension market
    • MoneyBox launches AI-powered personalised guidance
    • J.P. Morgan Personal Investing to launch personalised guidance and DIY investing services
    • New Junior SIPPs launched to support generational wealth planning
    • Chest to launch SIPP that turns cashback on spending into pension savings
    • Advertising and marketing activity
    • PensionBee promotes the peace of mind offered by pension consolidation
    • Interactive Investor’s ‘Penny Drop’ campaign puts the spotlight on low costs
    • Ross Kemp leads the latest iteration of the ‘Pay your Pension Some Attention’ campaign
    • Moneybox launches ‘more out of life’ campaign
  5. APPENDIX

    • Supplementary data
    • New individual pension premiums
    • New individual pension premiums – regular premium
    • New individual pension premiums – single premium
    • New individual pension contracts
    • New individual pension contracts – regular premium
    • New individual pension contracts – single premium
    • Channels to market – total personal pensions premiums
    • Channels to market – personal pensions premiums – regular premium
    • Channels to market – personal pensions premiums – single premium
    • Channels to market – total individual stakeholder pensions premiums
    • Channels to market – individual stakeholder pensions premiums – regular premium
    • Channels to market – individual stakeholder pensions premiums – single premium
    • Channels to market – total insured individual SIPPs premiums
    • Channels to market – insured individual SIPPs premiums – regular premium
    • Channels to market – insured individual SIPPs premiums – single premium
    • Market forecast data and methodology
    • Market forecast and prediction intervals
    • Forecast methodology
    • Report scope and definitions
    • Products covered in this Report
    • Products covered in this Report (cont)
    • Abbreviations and terms
    • Consumer research methodology

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