2018: Year of the Master Trust?
It’s that time where we all start to reflect on the year that has passed and look forward to the year that is to come. So, what will 2018 bring? Such a good question isn’t it? While we’re at it, we’ll try and get the winning lottery numbers for you as well.
For us, as a not-for-profit fintech company dedicated to improving customer outcomes, there are a number of trends emerging, but here are three that are uppermost in our minds.
1. Master Trust growth and consolidation
Master Trusts could be seen as the growing preferred workplace scheme model for employers (including Marks and Spencer’s) and with DB in decline it could be a logical move for many employers and administrators. Simple to effect, easier to manage and with the Pensions Regulator implementing new regulations next year to better manage risk and increase controls, this can only be good news for employers and members.
2. More Pensions Re-registration
As customers continue to look towards having more control, flexibility and choice about their money, the importance of a transfer process that also exhibits these features is of growing importance. Re-registration of pensions – by way of enabling the customer to remain invested and also prevent a taxable event – could become the transfer choice for many. And, as our proven by our roundtable on this very subject, other factors besides Freedoms (i.e. advent of Pensions Dashboards) could see demand for re-registration grow even more. So we anticipate more organisations focusing on upgrading to automate pensions re-registration.
3. Technology takeover
Technology has never played a greater role for businesses, and for customers it means a world of difference where up-to-the-minute instant valuations on their pension savings can be delivered straight to their watch. With more emphasis being placed on digital services, we see systems integration as key for any platform and adviser software supplier. Integrations mean reduced rekeying, improved resource allocation, and of course the speeding up of the whole chain of events for the customer - giving them a smoother, safer and more consistent experience.
That’s our top three for 2018, so it might technically be the Chinese ‘Year of the Dog’ but in pensions there’s a whole lot more coming our way!