The number of large master trust sections in the defined contribution (DC) pension sector rose by 12 per cent in 2025, according to Barnett Waddingham’s latest Large DC Schemes Analysis.

The report, which drew on anonymised data from nine leading DC providers, revealed that the number of large master trust sections increased from 109 schemes in 2024 to 122 in 2025.

While the combined share of bundled and unbundled own-trust schemes still slightly exceeded that of master trust sections in the dataset - 38.5 per cent compared to 34.4 per cent - the proportion of master trust schemes with assets over £1bn reached 40 per cent, matching the number of own-trust arrangements in that size bracket.

The report emphasised that this growth was not just the result of the consolidation of smaller or less well-governed schemes.

Increasingly, larger employers with substantial assets and member populations were adopting master trust arrangements.

Indeed, Barnett Waddingham highlighted a “significant shift” over the past five years away from traditional own-trust structures towards master trusts.

Despite the growth, master trust sections continued to make up 34 per cent of all schemes, a figure broadly consistent with 2024.

However, the share of bundled and unbundled own-trust schemes has declined slightly, now making up 18 per cent and 20 per cent of the total, respectively, despite their numbers remaining static.

In contrast, contract-based schemes have seen a notable rise, increasing from 22 per cent in 2024 to 27 per cent in 2025, with much of this increase concentrated in schemes with assets in the £500-600m range.

The report attributed this shift to investment growth and/or increased contributions, which pushed more of these schemes into the scope of the study.

Meanwhile, the report noted that challenges persisted in terms of member engagement.

It revealed that most schemes continued to report low completion rates for expression of wish forms, with 31 out of 50 schemes showing completion rates between 20 per cent and 40 per cent.

Only four schemes reported completion rates above 40 per cent, and three of these were own-trust arrangements.

Barnett Waddingham said this highlighted the ongoing difficulty administrators faced in prompting members to take even the most basic actions related to their pension.

Low expression of wish completion rates signal broader issues around engagement and underline the need for schemes to do more to connect with members throughout their savings journey, the firm added.

One potential solution, the report suggested, was to improve digital engagement, making it easier for members to access tools, update information, and interact with their pensions.

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