3i introduces master trust following review of its UK retirement benefits
Reviewing its defined contribution retirement plan in the UK and moving to a master trust was a “really good opportunity for 3i to reflect on how we deliver retirement benefits in the UK and the extent to which these provide value for money for our employees”, according to the investment company’s Senior Pensions Manager Adam Chate.
Speaking at the Create a Pension Strategy to Deliver Value for Your Workforce REBA webinar on 6 March 2025, sponsored by Hargreaves Lansdown, Chate said: “Now we’re building on this work by looking at how we can continue to monitor and refine our provision of UK retirement benefits.”
The company looked at several factors in its review, including contribution levels, fund options, costs and charges, investment performance and growth, retirement options and support, member communications and engagement and the quality of the administration service.
“Is there good flexibility for taking benefits at retirement? Are the different options clearly defined and communicated? Are there good communications and tools available to help employees engage with their retirement savings at different stages, and what's the quality of the administration service from the provider,” Chate said.
3i also looked at improving the shift from accumulation to the retirement (or ‘decumulation’) phase. “We looked at the level of support given to employees at various stages,” Chate said. “This includes encouraging employees to think about their contribution levels and whether these will provide adequate funds for their retirement.”
“Part of the reason we went with our current vehicle is that we wanted to have the full range of retirement options within that vehicle,” he said. “So when someone reaches retirement they can consider whether to take an annuity, move into income drawdown, take their benefits as cash, or a combination of those options.”
In a poll conducted during the webinar, just a third of [HR and reward specialist] attendees believe their main pension plan will deliver retirement adequacy for employees and only 16% say their employees see themselves as responsible for their own retirement adequacy.
