The majority of employers (82 per cent) have not switched or considered switching pension providers, according to the Department for Work and Pensions (DWP) 2024 employer survey.

Compared to 2022, employers were also more likely to say that they had not switched providers and wouldn’t know how to switch (44 per cent said this in 2024 compared to 38 per cent in 2022).

Of employers who were asked this question, just one in 10 had switched or thought about switching pension providers; one in 20 said they had switched providers once, and only 1 per cent had switched providers more than once.

In addition, large employers were likelier than small and medium-sized enterprises (SMEs) to say they had switched or thought about switching (18 per cent of large employers vs. 10 per cent of SMEs).

At the same time, SMEs were more likely (44 per cent) than large employers (18 per cent) to say they wouldn’t know how to switch.

Meanwhile, employers who offered DC schemes were slightly more likely than the average to say that they had switched providers once (7 per cent vs. 5 per cent) and less likely than the average to say they did not know if they had switched or thought about switching (4 per cent vs. 8 per cent).

Indeed, employers who offered DC pensions were slightly more likely than average to say there were circumstances under which they would consider switching providers (33 per cent of employers who offered DC pensions said this, compared to 30 per cent of all employers).

Of employers who had not switched pension providers, over two in five (46 per cent) said there were no circumstances under which they would consider switching their providers.

Fewer employers (30 per cent) said there were circumstances in which they would consider switching, and just under a quarter (23 per cent) did not know.

Employers who had switched providers were asked what factors contributed to their decision.

At least a third of employers mentioned the most common factors: The ease or convenience of the provider or scheme (36 per cent) and the value for money of the provider or scheme for them as the employer (33 per cent).

Employers who had not switched providers but said there were circumstances under which they would consider switching were asked about these circumstances.

The top concerns mentioned included the current fees or costs on themselves as the employer (71 per cent), the value for members/employees (67 per cent) and the value for money for themselves (63 per cent).

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