Could Private Markets hold the key to better outcomes for DC?
For pension schemes, tapping into private markets offers access to a broader and more diverse range of investment opportunities that are not visible in public markets.
Defined Contribution (DC) schemes, including master trusts, are now the most common type of pension in the UK, with 23.6 million employees enrolled in a qualifying scheme as of mid-2025. Increasingly, people will rely solely on their DC pots for income in retirement.
Unfortunately, contributions to these DC arrangements are often insufficient, resulting in a significant pension savings gap, that will only worsen due to the rapidly aging population.
Clearly there is a pressing need for greater education on the importance of adequate retirement savings, with higher contribution levels being essential.
While investment returns alone cannot close this gap, private markets offer a way to help member assets achieve higher long-term returns and improve retirement outcomes.
Private markets is an asset class that could potentially both increase member returns over the long term while also providing diversification during periods of public equity market stress.
This report explores the growing opportunity of private markets for DC Pension schemes and whether private markets is the key to better outcomes for DC members.
