I did not expect to see Pi Partnerships ploughing new ground, but three weeks after the Pension Schemes Bill called for decumulation defaults (pensions to the common person) , we have a report on the progress of 12 of the master trusts (schemes for many employers if you aren’t familiar with UK workplace pensions).

Pi Partnership have produced the first study of what a group of 14 master trusts are thinking of doing to turn pots to pensions.

The information is a little out of date but shows just how different the consultancy and insurance master trusts are to the schemes popular to small employers. Of course the two big small employer master trusts, People’s and Nest aren’t covered- nor NOW which has many employers but not much by way of assets.

What is also obvious from the table above is that the average pot per member differs enormously between the rich master trusts (one reports the average money in decumulation is £200k + per member. A spokesperson for a pot catering for those with small pots said that £10,000 was nearer the mark

The way to take your money back differs with the size of pot with pots upwards of £10,000 and under £250,000 being most likely to be swapped (or part swapped) for an annuity. Types of drawdown was most popular for those with some money but by far away the most popular means was cash0out for those with less than £30,000.

There are ways of finishing off accumulation and it tends to assume someone else to do the rest. CDC is on the horizon but is not here yet- TPT are anticipating 2027 but otherwise there is no noise of any other provider going “collective”.

There is little new thinking (as there is with Nest) within this group. I suspect there will be some false starts among those who claim they will float and fix but let that be. What is important is that the conversation has started and we can hope for more.

You can download the report from this link.

I am pleased that a firm of trustees and consultants is putting some effort into monitoring the work of 12 master trusts in getting ready to provide default decumulations.

There are two case studies at the back from Aviva and TPT. More on this shortly! I have worked closely with Sam Ashraf formerly of Align which is now a part of Pi Partnership. The firm will be 25 in September and are becoming an institution.