Pensions - Articles - DC Pensions Master Trust Default Fund Review

 Retirement outcomes for DC scheme members in Master Trusts have undoubtedly been impacted by recent market challenges with values slipping below pre-pandemic levels, reveals analysis in the latest Hymans Robertson ‘DC Master Trust Default Review’. The report covers the impact on anticipated member outcomes and asks: What steps can we take? Consideration needs to be given to what actions can and should be taken to support members, especially those in legacy arrangements or coming up to retirement. The report, from the leading pensions and financial services consultancy, also found that members are increasingly calling for ESG to be considered in their pensions schemes’ investment options.

 Commenting on the latest findings, Claire Roarty, Head of DC Provider Relations at Hymans Robertson, says: “DC Master Trust members are demanding more from their funds with nearly a third of members expressing a desire for investment options which offer positive environmental and social impacts. We launched the Climate Impact Initiative in 2021 to meet these demands and more DC savers than ever now have access to impact options. However, there is much work still to do and 42% of Master Trusts don’t offer impact investing options to members and have no plan for their inclusion – creating a gap between what members want and what the market offers.

 “With the DC market continuing to grow, it is imperative that providers put plans in place to introduce an impact choice and communicate this to their members. Improving member engagement must remain a key priority, particularly in the current market where longer-term savings like pensions can slip down the agenda. Providers must do all they can to encourage better retirement planning before it’s too late.”

 A copy of the Master Trust Default Fund Review can be accessed here