How to make the most of your master trust
Master trusts have become the dominant force in UK defined contribution (DC) provision.
Figures from The Pensions Regulator (TPR) show that in 2025 master trusts held £208 billion in DC assets, accounting for 83% of the total universe. Further, master trust membership grew from 270,000 individuals in 2012 to 30.1 million by 2025.
This stratospheric growth is set to continue following the Pension Schemes Act 2026 which introduces a scale threshold from April 2030 requiring all authorised master trusts to have assets of at least £25 billion in a single main scale default arrangement (MSDA).
Government sees authorised master trusts as better able to negotiate lower service provider fees, higher levels of governance while providing access to a wider range of asset classes, most specifically private markets.
All of this is critical in ensuring members receive Value for Money (VfM), which is a key tenet of the Pension Schemes Act designed to shift the focus of workplace DC pension competition from cost alone to holistic investment outcomes, service quality, and overall value.
And government is not only focused on ensuring master trusts help members accumulate an adequate pension pot. Policymakers also expect providers to play a larger role in delivering decumulation solutions which will support trustees in their Guided Retirement Duties as laid out in the Pensions Schemes Act.
Interrogating the data
TPR will oversee this rapidly evolving and escalating market, using data that master trusts must submit annually under the VfM framework across three areas: investment performance; costs and charges; and quality of service.
However, employers and trustees must also play their role in holding providers to account. And while submissions under VfM provide what government calls “standardised, transparent metric data that enables consistent and meaningful comparisons across competing pension schemes,” such transparency does not explain what good value for money looks like to your own membership.
Employers and trustees will need to use their own intrinsic knowledge of their workforce to ensure their master trust is delivering the right services and governance, at the right price for them.
And with more than a quarter (27%) of participants in REBA’s Future of Pensions Research 2026 saying that acting to improve vendor service levels or change vendor is a current pension priority, now is the time to interrogate master trusts on how they shape outcomes, support employees, and ensure the chosen solution is fit for purpose.
Key questions for your master trust provider
- How aligned is the investment strategy to my membership’s objectives and are returns competitive?
- What avenues exist for membership to communicate with the master trust?
- What level of engagement is there between the master trust and each employer?
- What plans does the master trust have to support employers with future guided retirement obligations?
- How do the fees and costs compare with the wider market?
Supplied by REBA Associate Member, REBA
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