New research from Buck, a leading consulting, administration, and technology services firm specialising in pensions and employee benefits, has today r
New research from Buck, a leading consulting, administration, and technology services firm specialising in pensions and employee benefits, has today revealed that master trusts are the most suitable defined contribution (DC) pension scheme for nearly 60% of UK employers. Master trusts have proven to be the most effective option for businesses as they look for pension schemes which meet the needs of a modern workplace whilst delegating formal responsibility for scheme management to experts outside their organisation.
The findings also show that 84% of employers want their members to have access to a wide range of online tools, education, and support when considering their pensions. As such, digital capability and education is one of the most sought-after features, reflecting wider trends in employee engagement and communication.
Buck’s research also looked into 17 major master trusts and revealed that 94% provide members with access to a pension calculator and 88% provide retirement planning support, showing that master trusts are generally meeting the demand for core online features. However, access to more detailed tools such as risk profilers and annual allowance calculators is less common.
The survey asked 50 employers a series of questions on a wide range of pension-related topics to help businesses understand what employers actually want from their pension. The employers covered different sizes and sectors and have over 500,000 UK employees between them.
Mark Pemberthy, Head of DC and Wealth at Buck in the UK comments:
“Our research confirms that pensions continue to be an important part of any organisation’s reward offering, and employers want a positive experience for their employees. Pensions can be complex and difficult to understand, so engaging tools and effective communication can play an important role in helping people make informed decisions about their financial planning and reinforcing the value of the pension within the benefits package.
“Although master trusts have only been in existence for little over five years, their popularity has risen sharply.”