Master Trust
💡What is a Master Trust?
A master trust is a type of pension scheme where multiple employers participate in one large, centralised pension arrangement, instead of each business creating its own.
Think of it like a shared office building: rather than every company constructing a new building, they simply rent space in a secure, well-managed facility and share the costs of utilities, maintenance, security, and management.
How It Works
- Your company joins an existing pension scheme that other employers are already part of.
- Professional trustees manage the entire scheme on behalf of all members.
- Your employees still receive their own individual pension accounts, just like in any other pension arrangement.
🧩 Master Trust – Pros & Cons Overview
| Benefits (Pros) | Things to Consider (Cons) |
|---|---|
| Lower costs – Shared administration and investment fees make it more affordable, especially for smaller businesses | Less control – You can’t customise every element of the scheme |
| Less hassle – Governance, compliance, and regulatory responsibilities are handled by the master trust | Limited investment options – Investment choices are set by the master trust, not your company |
| Professional management – Expert trustees oversee the scheme, reducing the employer’s burden | Shared governance – Trustees act on behalf of all participating employers |
| Quick to set up – Joining an existing scheme is faster than creating a standalone pension scheme | Provider dependency – You rely on the quality and consistency of the master trust provider’s service |
| Scalable – Works efficiently whether you have 5 employees or 500 | — |
Is a Master Trust Right for Your Business?
Master trusts are ideal for small to medium-sized businesses that want a cost-effective, professionally managed pension scheme—without the administrative workload and complexity of setting up a standalone scheme.
💰 Want to Explore Your Options?
Get in touch with Future Proof Finance to discuss whether a master trust is the right fit for your company. We’ll guide you through the process and help you make the best decision for your employees and your business.
