WTW has confirmed it will acquire Cushon from NatWest Group for an undisclosed sum.
Cushon will run as a separate master trust from WTW’s LifeSight master trust, with the former focused on mid-sized business and the latter targeting larger corporates for their workplace pension.
In October Corporate Adviser revealed that WTW was in the shortlist to buy Cushon, after NatWest announced it was up for sale earlier this year.
This move comes amid a push for scale among DC pension providers, with government requirements stipulating that DC multi-employer providers will need to reach £25bn by 2030, or have clear plans to reach this scale by 2035.
Cushon has almost £4bn in assets under management and 730,000 members. LifeSight has over £26bn in assets under management and 430,000 members.
Cushon was initially launched as a workplace Isa provider but moved into the workplace pensions market with a series of acquisitions between 2020 and 2022. This included the Salvus Master Trust, the Workers Pension Trust and the Creative Pension Trust.
As one of the newer master trust providers in the DC sector, NatWest Cushon has built its proposition on strong technology and ESG credentials. It was also one of the first DC providers to invest part of its default into private markets and productive assets — one of the key drivers behind the government plans to drive consolation in this market.
This acquisition agreement includes a referral arrangement enabling NatWest’s commercial banking customers to continue to have seamless access to Cushon’s workplace pensions and savings services for their employees.
WTW president of health, wealth & career Julie Gebauer says: “Adding Cushon to our portfolio will enable us to serve all segments of the rapidly growing master trust space.”
“Cushon has built a groundbreaking technology-led solution that is highly scalable and has enjoyed great success. This acquisition opens possibilities to help a wider range of clients and support their members improve their financial futures.”
Master trusts are the fastest growing segment in the DC market, with industry growing by around 35 per cent in 2024. Growth is anticipated to average around 18 per cent per year, over the next decade.
Cushon founder and CEO Ben Pollard adds: “Our proposition has created strong demand among NatWest’s corporate clients which we will continue to serve through our ongoing partnership agreement with NatWest.
“With our leading-edge market propositions, WTW’s strong capabilities, and NatWest’s enviable distribution, all the ingredients are in place to accelerate our next phase of growth.”
Paul Thwaite, group chief executive officer, NatWest Group, adds: “Since acquiring a majority stake in Cushon, we have worked together to grow the business by bringing more innovative products to more customers. Going forward, I am pleased that we will continue to offer access to Cushon’s services on a referral basis, especially given the ongoing demand for pensions solutions amongst SMEs and commercial mid-market firms.
