Pension Coverage 2025

Deferred personal pensions continue to decline while those in current contribution unchanged in 2025

• Of workers with personal pension cover, almost eight in ten (78%) are currently contributing to their personal pension scheme, unchanged from the same period in 2024. Analysis by age group shows that personal pension cover was greatest amongst females aged 35 to 44 years – 86% marginally more than for males of similar age (85%).
• Personal pensions where payments had been deferred for a period of time have continued to decrease in 2025 – 18% compared with 19% of personal pensions in the same period in 2024 and 23% of personal pension coverage in the same period in 2023. Just 7% of people aged 55 to 69 years were already drawing down their pension.
• Personal pensions in current contribution was highest for workers whose broad occupational group is Professionals (82%) followed closely by Manager, Directors, and Senior Officials (81%) and Administrative and Secretarial (79%).

Almost four in ten personal pensions in current contribution have been set up in the last 5 years

• Some 37% of personal pensions in current contribution were relatively new pension schemes and had been set up in the previous 5 years, while almost one in five (19%) workers with personal pension coverage (in current contribution) have been in their pension scheme for 20 years or more.
• Of workers who have deferred payments for a while or completely, one in seven (14%) had been in their pension scheme for 20 plus years.
• Almost four in ten (39%) of personal pension holders in current contribution who are aged between 55 and 69 years have been in their pension scheme for 20 years or more, while 22% of personal pension holders aged 45 to 54 years, and who are making current contributions to their pension, were in their pension scheme for this duration.
• Some 45% of workers aged 35 to 44 years who are currently contributing to a personal pension, have been a member of their pension scheme for 5 years or less, while just three in ten (30%) have been in their pension scheme for between 5 and 9 years. 

Three in ten people not currently employed but were previously, continue to contribute to their personal pension

• For people not in current employment (but with previous employments), some 30% are making current contributions to their personal pensions, while a further 30% have deferred payments for a while or completely, and 39% are already drawing down their personal pension.
• Half (50%) of people aged 55 to 69 not in current employment (but previously employed), are already drawing down their pension, compared with 49% in the same period in 2024 and 47% in 2023.
• One-third (33%) of personal pension holders not in current employment but previously employed, who are still contributing to their pension, are in the scheme for 20 years or more, unchanged from 2024. Over one in five (21%) who have deferred payments for a while or completely, were in their pension scheme for a similar duration, while a further four in ten (40%) had deferred payments on a pension scheme of less than five years. Some 52% of people who were already drawing down their pension had been in the pension scheme for 20 years or more.