Master Trusts

Why Master Trust?

A Master Trust can offer a lower cost arrangement with the benefits of a well governed, outsourced packaged solution with everything in the one place. This approach can provide significant overall cost savings and brings with it time and cost efficiencies as a consequence of outsourcing to one supplier.

Economies of scale and competition in the market have driven prices down and there’s been significant proposition development, particularly around the member journey and experience, which leads to a full and rich experience for members to and through retirement. Additionally, Master Trust can often represent the most efficient method of transferring assets across from an occupational pension scheme.

It’s clear that the benefits of Master Trusts will help them continue to grow in popularity with employers, however care is needed. Low barriers to entry have led to an explosion in this highly competitive market, and with increased regulation, and the risks of investment transition, it’s never been more important to seek advice when considering a move to Master Trust.