London, 30 July 2026: An additional 600,000 employees were saving into a workplace pension in 2025, according to the latest Office for National Statistics pension participation trends data published today.
The increase of 1% from the previous year means 9 in 10 eligible employees and 8 in 10 of all employees are now saving into a workplace pension, continuing the overall trend of rising participation since Auto-Enrolment came into force in 2012, largely as a result of more people becoming eligible as salary rises take them over the £10,000 trigger for automatic enrolment.
However the data pointed to some continuing gaps, with the proportion falling to 55% among employees of small employers with less than five employees, and also to 67% among Pakistani and Bangladeshi communities.
The level of new-saver opt-outs has also risen to almost 12%, while the rate of opt-outs for those already contributing remains very low, potentially raising concern that new employees are prioritising immediate income needs over retirement income.
Data on pensions in payment among those old enough to access their retirement savings reveals that first access to defined contribution schemes is now at 49%, indicating the shift towards this type of scheme becoming the predominant form of pensions, soon overtaking defined benefit schemes.
Becky O’Connor, Head of Pensions at PensionBee, said: “It’s pleasing to see that a workplace pension has become a fact of working life for the vast majority of employees. But the statistics reveal areas of concern where there is still work to be done to ensure private retirement savings are there for everyone, not just workers earning more than £10,000 from a single job.
“The difference in participation before and after the £10,000 trigger indicates that voluntary enrolment for lower earners is unusual and shines a spotlight on whether reducing or removing the trigger could be a policy focus for boosting retirement outcomes among lower earners, or those that work across multiple jobs.
“Opt-outs among new joiners is concerning as this rising trend suggests that starting a new role is possibly acting as a negative trigger, for a decision that can have lasting consequences. The danger is compounded by the fact that people who opt out rarely revisit that decision, meaning a short term choice made in a moment of financial pressure can cost years of compound growth. This is perhaps an area for employers to offer more pension support and education to new staff upon entry, prompting them on an ongoing basis.
“The growth in the proportion of pensions in payment that are defined contribution rather than defined benefit is a trend worth watching as this changes the dynamics of how the majority of the retired population accesses income in retirement, with the likely effect that incomes in general become less generous and less secure and a greater number of retirees will need support on the best ways to access their funds”.
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