One in 10 pension savers with defined contribution (DC) workplace pots plan to increase their contributions in 2025, according to new research from the Pensions and Lifetime Savings Association (PLSA).
The findings suggest growing awareness among savers about building robust retirement funds, particularly for those with DC pensions who need to take a more active role in managing their savings in later life.
Unlike defined benefit pensions, which guarantee a salary-based retirement income, DC pension holders bear the responsibility for their retirement outcomes, with final amounts depending on factors such as contribution levels and investment performance.
The survey of 2,000, conducted by Yonder Consulting, revealed that 12 per cent of people with DC pensions aim to review their pension plan and retirement goals in 2025. This figure rises significantly to nearly a quarter (23 per cent) among those aged over 55.
Across the broader population, including both DC and non-DC pension holders, eight per cent plan to review their pension arrangements and retirement goals this year. Those with DC pensions are particularly likely to be conducting such reviews, the PLSA research found.
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PLSA’s survey suggests Britons are taking pension saving seriously in 2025
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Zoe Alexander, director of policy and advocacy at PLSA, said: “The start of a new year is the perfect time to reset financial goals and, while everyday needs such as reducing spending or saving for short-term plans often take priority, it’s encouraging to see people across different age groups turning their attention to pensions.”
She noted that younger savers are focusing on building strong financial habits early, while those approaching retirement are prioritising reviewing their plans to ensure they are on track.
Alexander emphasised that DC pension holders need to be proactive in securing their desired retirement . “Those with defined contribution pensions are more likely to need to take positive action themselves to secure the retirement they expect, as saving at the default eight per cent may not get them there,” she said.
The pension expert cited that small adjustments can have significant long-term impacts. Alexander added: “Small changes such as reviewing investment choices, increasing contributions by even a small amount or making sure they are taking advantage of employer matching contributions can make a real difference over time.
“These pensions offer valuable opportunities to build a secure future, but taking action early is key.” The PLSA survey also revealed broader financial planning intentions among respondents for 2025.
A quarter of people plan to review and reduce their monthly spending this year. More than a fifth (22 per cent) intend to start saving for specific goals, such as house deposits, holidays or education.
Nearly one in five (19 per cent) aim to pay off debt, while seven per cent plan to open an ISA savings account. The research also found that 5 per cent of respondents plan to either start or increase contributions to a child’s savings or education fund.
Separate research from digital wealth manager Sidekick shows high earners are focusing savings investment planning in 2025, outside of retirement. More than half (54 per cent) of those earning over £40,000 plan to increase their savings this year.
The study found that 38 per cent of high earners are turning to tax-efficient investment vehicles, such as ISAs and Venture Capital Trusts. Nearly half (47 per cent) aim to boost their investments, while 28 per cent are exploring alternative assets including VCTs and private equity.
This research indicates a clear shift towards active wealth management, with only 16 per cent of high earners planning to maintain their current financial strategy unchanged.
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Matt Ford, the co-founder and CEO of Sidekick, is urging Britons to take advantage of changes to the economy in the New Year which could significantly boost their finances.
He explained: “With inflation easing and interest rates stabilising, 2025 is a golden opportunity for high earners to step up their financial strategies. People are done waiting on the sidelines.
“They want to grow and protect their wealth, and they’re actively looking for the right tools to do it. That’s why we’ve made sure Sidekick’s revamped suite of sophisticated investment products put ultra-wealthy investment tactics within reach of high earners.”
Among the recommended investment tools cited by Sidekick include the global stock market, global bonds and money market funds. Ford added: “We’re seeing high earners move beyond basic savings and generic robo-advisors. “Wealth building today is about strategy – making the money you have work harder.”
