The evolution of Ireland's master trust market

With over €32 billion in assets under management, master trusts account for about 50% of Ireland's defined contribution pension scheme market. Their growth is expected to continue as standalone pension arrangements face an increasing regulatory burden. The rapid evolution of this sector is significant.

Employers are drawn to master trusts for their strong governance, regulatory reassurance from the Pensions Authority, and the opportunity to reduce time spent on compliance mattes, allowing them to channel pension spending towards what matters most for their employees.

Master trusts have cemented their role in the Irish pension landscape, paralleling their development in other regions.

Our latest report examines the current state of the master trust market in Ireland and offers guidance for employers considering a move or already participating in a master trust.

Here are the key highlights:

• Robust market competition spurs efficiencies and innovation.

• Master trust trustees are evolving investment strategies, particularly regarding fund offerings and the structure of default investment strategies.

• Effective synergy between technology and member engagement distinguishes master trusts.

• Delegating regulatory compliance to a master trust allows employers to focus on enhancing their pension arrangements.

• The implementation of an authorisation regime, in-scheme drawdown, and a focus on value for money by the Pensions Authority will propel further transitions to master trusts.

• Future consolidation within the master trust market is anticipated, with a secondary market likely to develop.

For employers yet to consider master trusts, we recommend a four-pronged approach:

1. Assess options: determine the optimal approach for you and your workforce.
2. Review the market: each master trust has unique features; robust due diligence can unlock greater benefits.
3. Efficient transition: managing this key transaction requires careful planning and ongoing management for long-term success.
4. Strong oversight: implement effective oversight arrangements to ensure you receive the service and support you expect.

Whether you're an employer considering master trusts for the first time, in a period of transition, or a seasoned participant, our latest report offers key insights into the evolving pension landscape both now and into the future.

We’re here to help

At PwC, we understand the complex challenges facing the pensions industry today. Our team of experienced professionals combines deep industry knowledge with cutting-edge analytics to provide tailored solutions for your pension scheme. Whether you're grappling with regulatory changes, seeking to optimise your investment strategy or looking to manage risk more effectively, we're here to help. With our global network and local expertise, we can guide you through the evolving pensions landscape, ensuring your scheme is well-positioned for the future. Contact us today to discover how PwC can support your pension objectives.