Should you trust master trusts?

Master trusts have returned to favour following auto-enrollment on pensions. But should you trust them? Natalie Stanton investigates.

The Pensions Regulator is looking to tighten the rules on one form of company pension scheme, amid rising concerns that it doesn't offer sufficient protection for scheme members in the event that the provider becomes insolvent.

"Master trust" pension schemes involve a single provider running a centralised fund for employees at several different companies. This lets firms pool their pension obligations, reducing costs. The master trust structure dates back to the 1950s. In recent decades firms have tended to use contract schemes, under which an insurance company took responsibility for running a pension arrangement for a single company.

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Natalie joined MoneyWeek in March 2015. Prior to that she worked as a reporter for The Lawyer, and a researcher/writer for legal careers publication the Chambers Student Guide. 

She has an undergraduate degree in Politics with Media from the University of East Anglia, and a Master’s degree in International Conflict Studies from King’s College, London.