Moving to a master trust? 3 reasons to avoid delay
17 Mar 2020 - Estimated reading time: 5 minutes
According to new research, 87% of employers are looking to review their pension provider in the next 12 months.* If recent trends are anything to go by, we expect a large proportion of these will move to master trust. Think you might follow the trend? Here are 3 reasons why you should make the move now rather than delay.
1. Current attractive pricing
One of the main drivers for moving to a master trust is to benefit from significant cost savings. Increased competition in the market has resulted in pricing reducing even further – recent reviews have seen pricing reduce by as much as 20% in the last 3 months.
As demand continues to increase, we can’t be certain whether this attractive pricing will continue long term, or if it is a temporary phenomenon. We recommend testing the market now to see how much you could potentially save in the current climate – we can give you an indicative quote based on high level scheme information free of charge!
If you’re already in a master trust arrangement, you should review your provider at least every three years – even if reviewed 12 months ago it’s worth looking at the market again to check you’re still maximising value.
2. Get your pick of the bunch
The last few years have seen a remarkable growth in demand for DC master trusts and this is only set to continue. By 2026, their share of the workplace pensions market is expected to grow from £20bn today to £400bn.
With this growth in demand, master trust providers could get more selective. Moving now will ensure you get your pick of the bunch at a time when they are all still hungry for new business.
3. Combine with other planned changes
You may already be thinking of making changes to your scheme based on recent trends and regulatory changes, for example in response to increasing responsible investment/ESG focus.
Maximise efficiency by making these changes in conjunction with a move to a master trust arrangement – many providers can offer an off-the-shelf solution to meet your needs.
Ready to make the move? Contact Mike if you would like a free indicative quote for your scheme.