Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the “most suitable” pension fund for their employees, according to research by Buck.
A survey of 50 UK employers showed almost 60% consider master trusts to be the most appropriate DC scheme for their employees. This coincides with the growing trend of businesses using master trusts, due to their “effectiveness” in meeting the needs of the workplace in the modern world, according to the consultant.
Some 84% of those employers said employees want greater understanding of and easier access to their finances.
The research also included an evaluation of 17 major master trusts, which found out that although access to certain online tools and annual allowance calculators was limited, 94% gave their members access to a pension calculator and 88% supported them in planning their retirement. Buck’s concluded that master trusts are the “most suitable” pension funds as they appear to meet demand for vital online features.
Buck’s UK head of DC and wealth Mark Pemberthy said although pensions are complicated and can be difficult to understand, “engaging tools and effective communication can play an important role in helping people make informed decisions about their financial planning.”
The survey also showed employers’ future financial concerns, with 25% concerned about the risk to their businesses’ reputations if they are unable to pay retiring employees a satisfactory income, and 44% were worried about the long-term economic effect on their businesses if their employees cannot afford to leave work.