There is no doubt that the Scottish Widows Master Trust is here to say. It will pick up the Lloyds Banking Group’s DC scheme (Your tomorrow) which will make the Master Trust a £1o bn scheme by 2030 (and well before), the huge book of GPP’s held by Scottish Widows will be incorporated in the Master Trust by 2035 to take it beyond the necessary £25bn.
What will it offer its members? The Corporate Advisor “Workplace Pensions into Retirement” report tells us it may offer flex and fix
But it most definitely not go the CDC route. 
This suggests that members of the workplace pensions are going to be asked to make their own decisions about what happens to their money both before and in retirement.
Corporate Adviser can now fill us in on what Scottish Widows are doing to counter the Government’s claim that CDC could offer 60% more income (pound for pound) than DC.
Scottish Widows has launched two new workplace pension options, Lifetime Investment Plus and Lifetime Investment Extra, giving members access to private market investments.
The options sit within Scottish Widows’ Lifetime Investment range, which manages pension savings from growth through to retirement, adjusting investments based on members’ risk profile and chosen retirement outcome.
The Plus and Extra options introduce private market exposure through Scottish Widows’ Long-Term Asset Funds (LTAFs). In the growth phase, assets are invested in the CG SW Growth LTAF, managed by Aberdeen Investments, targeting higher-return assets such as private equity, venture capital, infrastructure and private credit.
As retirement approaches, investments move into the CG SW Diversified Credit LTAF, managed by BNP Paribas Asset Management, which focuses on lower-risk private credit.
This looks like a variant on lifestyle with the emphasis very much on savers making investment options
Lifetime Investment Plus invests around 11 per cent in private markets, while Lifetime Investment Extra invests around 23 per cent.
Employers in the Scottish Widows Master Trust can choose any of the three Lifetime Investment options as a default, with members also able to self-select if they prefer.
Just how much engagement Scottish Widows will get from their membership is unclear but with the majority of members working for a bank, they clearly think this level of sophistication is appropriate,
Scottish Widows managing director pensions and retirement Graeme Bold says: “Bringing private markets into workplace pensions is a major milestone in helping customers make the most of their retirement savings. We believe investing in private markets increases diversification and can provide access to long term growth opportunities to support retirement incomes.
“As the provider of the UK’s biggest and longest‑running default pension scheme we have a deep understanding of what savers want and need. We’re broadening investment opportunities through our new Lifetime Investment Plus and Extra propositions to improve long‑term outcomes and giving members greater choice and flexibility.”
Scottish Widows chief investment officer Kevin Doran says: “With Scottish Widows Lifetime Investment Plus and Extra, members get access to investment opportunities that aren’t available on the stock market including innovative startups and those companies of the future, currently looking to scale. The portfolios will include investments in areas driving energy transition and adaptation, delivering benefits to members in their immediate environment, alongside future financial returns” .
Clearly, Scottish Widows have confidence in their members to take investment decisions. I am not so sure (at 64) that I could take decisions on how best to turn my pot to pension!
