DC master trusts best schemes for most employers – Buck

Defined contribution master trusts are the most suitable DC schemes for nearly 60 per cent of UK employers, research from Buck has suggested.

Its analysis found that 84 per cent of employers want their members to be supported and have access to online tools and education, which it says is best provided by DC master trusts.

Buck surveyed 17 master trusts and found that 94 per cent provided members with access to a pension calculator and 88 per cent provide retirement planning support, “showing that master trusts are generally meeting the demand for core online features”.

However, it noted, access to more detailed tools, including risk profilers and annual allowance calculators, are not as common.

Commenting on the findings, Buck head of DC and wealth, Mark Pemberthy, said: “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.”

The survey asked 50 employers a series of questions on a wide range of pension-related topics to help businesses understand what employers want from their pension.

The employers covered different sizes and sectors and have over 500,000 UK employees between them.

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