One minute, you're jumping on a tube on the way home from work and you don’t know until you get off that tube that you are on the last trip you will be making on public transport for quite some time. So what has lockdown done to the Master Trust industry?

There have been pivotal days before, the first Master Trust being set up in earnest back in 2011, Auto-enrolment legislation, Master Trust Authorisation and now lockdown. Each of these events oddly enough have ever prosperous fortunes for the Master Trust industry. We have seen a surge since lockdown for the use of Master Trust either as a vehicle of choice to replace the current DC vehicle or as a component to sit alongside occupational Trusts such as for deferred members or those at-retirement.

Here are some statistics that our research and industry has shown:

• Master Trusts have grown from just c.£200m to c.£55bn since 2012 as a result of auto enrolment.
• As at 2019, active members in Master Trusts at more than 12m and over 10.5m deferred.
• Master Trusts expected to grow to c.£200bn by 2025.
• This growth is expected to come from single employer trusts moving to Master Trust.
• More schemes considering move from GPP to Master Trust.
• DC contributions will continue to grow at pace following increase to statutory rates

In the 2019 calendar year, we have seen lead Master Trust providers increase by c20% in their fortunes by way of assets under management and member number. The reason for this can be numerous:

• Lowering costs
• Improving value and greater transparency to improve employee outcome
• Widening investment choice and in line with what really matters such as Responsible Investment
• Reducing employer regulatory burden
• Adding financial wellbeing tooling or other saving and banking tools
• Potential to enhance the member experience and engagement through the tools and offering provided by Master Trusts that is leads technology and innovation
• Timing supports the change in workforce need and management alongside other changing conditions for employers – which lends to continual review of the pension vehicle and its objectives

The last 3 months has seen a commitment to over £4bn of assets move to Master Trust. In brief, we anticipate that the market will remain buoyant over the next 18 months with the direction of travel and interest in Master Trust continuing.

DC Master Trust Marketplace - roundtable discussions

Join us for the first in a series of innovative roundtable discussions designed to provide insight and ideas to shape how the DC market could develop.

There are two sessions available which each feature a panel of DC master trust providers of different sizes and target market.

Roundtable - discussion 1:

Thursday 16 July 10-11am

Roundtable - discussion 2:

Thursday 16 July 12-1pm

Register