LCP’s analysis focuses on the key areas shaping the master trust market beyond investments. The report covers pension providers managing more than £700 billion of workplace pension assets across all arrangements, representing an estimated 85–90% of the total market.
Government policy continues to encourage consolidation, reducing the number of providers and schemes to give greater scale, including the requirement for a minimum of £25billion in default strategies by 2030. Based on LCP’s data in the report, 7 providers currently have a default of over £25 billion.
Last year, post-retirement was an area most in need of development in the master trust market, given that master trusts will need to have a default solution in place during 2027. The report shows encouraging progress has been made, with providers introducing a range of approaches. Examples include developing a solution offering a sustainable income via drawdown in early retirement, followed by guaranteed income via an annuity later. Beyond the underlying product and investment solution, LCP believes the more important factor is the overall support available to members. According to the survey, no provider offers a complete package, potentially due to the complexity of the issue and ongoing regulatory changes.
Service performance has also improved since last year. On average, provider performance is strong across the metrics used - helpline answer times and completion time for tasks such as transfers and cash payments. While there is less variation between the best and worst providers compared to last year’s report, helpline answer times are more polarised, and some providers continue to struggle with volatility over the year as members react to market movements.
Providers increasingly recognise that competition is tough and are introducing more ways for members to interact and understand their pension savings. While the overall picture is more positive, it remains to be seen how resilient these models will be during periods of heightened activity.
Other findings in the report include:
Over 2025, only half of the providers LCP receives data from have seen an increase in call volumes, despite growing memberships across the board. As provider solutions develop, members have access to more information about their pension through online accounts and Apps, and LCP expect to see a shift in how members are engaging with their provider.
As more people turn to social media for financial information, it is essential that master trusts use a broader mix of communication channels to engage members effectively. While most providers have some presence across social platforms, there is still clear room for improvement.
The provider landscape is continuing to change, with continuous developments and enhancements to propositions for the benefit of employers and members.
The Government is pushing ahead with reforms in the Pension Schemes Bill, which is likely to result in further consolidation of the master trust market, despite transition plans for those that won’t ‘make the cut’ by 2030. This is an increasingly important consideration when selecting a master trust.
Rachel Crowther, Partner in LCP’s DC team, commented: “It’s good to see that there has been an improvement in service standards for members across the market. The most notable area of development in the market over the last year has been the evolution of decumulation options, and we encourage providers to further develop broader support solutions for members. We expect continued progress in 2026, particularly in post-retirement, as the 2027 deadline for a default approaches and master trusts providers work to develop credible solutions.”
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