Master trusts should use digital financial journeys to support members amid the cost-of-living crisis, Wealth Wizards has said, highlighting master trusts as being "ideally positioned" to help members in a recession.

The provider suggested that the current economic conditions, including recession, double-digit inflation, and interest rate increases, have left many people feeling financially uncertain and unsure about the best course of action to improve their financial well-being.

Wealth Wizards business development director, Nick Hall, also warned that while master trust members are committed to saving for their future, a prolonged recession could tempt savers to cut or stop their pension contributions without fully understanding the long-term consequences.

However, he argued that master trusts can use digital financial journeys to engage with their members during this time, to help boost members’ financial confidence, proactively manage their finances, and help them make more informed decisions about their financial future.

He stated: “Digital journeys take members through a ‘financial health check’ designed to help them better understand their current finances.

"Members can alter their input figures to understand the impact these changes have on their money allocation and pension contributions. This helps them plan realistically for their desired retirement lifestyle.

“Digital services are available 24/7 and are convenient for members to access at their convenience. Additionally, as these services are low maintenance, master trusts can offer them without having to increase their headcount.

“With a growing focus on financial well-being, this level of engagement will benefit both master trusts and their members, not just during the current recession, but throughout the members' retirement saving journey.”

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