Optimising workplace pensions for 2026
Our 2026 DC MOT report enables employers to benchmark their schemes against others to help them to identify ways to save costs, reduce risk and increase the value that employers, trustees and members receive.
The 2026 Autumn Budget has brought a welcome degree of policy certainty for employers, supporting longer-term workforce and benefits planning. However, it has also landed in the context of rising employment costs, renewing emphasis on the efficiency and value of workplace pensions
The introduction of a future cap on National Insurance savings through salary sacrifice is a cost issue primarily for employers, as well as some employees. At the same time, the lingering effects of higher employer National Insurance contributions from the previous budget mean value for money, employee engagement and retirement outcomes are even more important. As employment costs rise, pension schemes can no longer operate quietly in the background.
And yet, these factors do not represent a wholesale shift in the tax efficiency of pensions. Importantly, pensions remain the most tax-efficient retirement savings vehicle available to the UK workforce. While we should be aware of the changes, their impacts and ways to mitigate them, concerns around the key role pensions play in achieving retirement readiness are misleading and unhelpful.
Our latest DC MOT research covers 50 different aspects that can help employers and trustees to deliver benefits effectively. It covers over 400 DC schemes with £50bn savings that collectively support over 3m members to plan for their futures.
This DC MOT report for 2026 highlights three clear messages:
DC MOT Report 2026
Key statistics from this year’s report:
- 60% of employers do not offer retirement planning courses
- 51% do not provide support with tax decisions
- While 33% offer financial guidance, only 3% fund regulated financial advice
- 29% of schemes do not provide full flexible retirement options
- 44% last reviewed the fees paid by members to the provider three or more years ago
- 27% last reviewed the fees paid by the employer to the provider/adviser in the same time frame
- 47% of employers have never asked their staff whether they understand and value their benefits, or if they would prefer different ones.
About the DC MOT
Mercer’s DC MOT is an audit of your company’s pension practices. It benchmarks your scheme and broader benefits package against those of other UK employers that have completed our survey, and against Mercer’s view of best practice.
The results will help you understand how your benefits compare to those of your peers, as well as whether your business can save money, increase value and reduce risk in your benefits offering.
Learn more here or speak with your Mercer consultant.