Nine DC workplace pension providers now have assets in excess of £25bn — the minimum AUM threshold the government has proposed for multi-employer schemes, according to the Corporate Adviser Master Trust & GPP Defaults report, out today. However only five of these schemes have £25bn in one default fund or strategy.
Data on which schemes are hitting scale in the DC workplace market is contained in Corporate Adviser’s latest Master Trust and GPP Defaults report.
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The Government has previously proposed a £25bn minimum threshold by 2030, but exact details of how this relates to defaults strategies is currently under consultation. Corporate Adviser’s report also shows a number of other schemes are also on target to reach this figure within five years given current growth trajectories.
The report shows that overall DC provider assets grew by 19 per cent in 2024, and have increased by 48 per cent over two years. In total DC provider assets stood at £667bn at the end of 2024.
The report shows that Aviva remains the biggest DC provider in terms of bundled assets. However it shows that auto-enrolment providers — such as Nest, The People’s Pension and Now: Pension — typically enjoyed stronger growth in assets than the insurance based providers, such as Aviva, Scottish Widows, Legal & General and Standard Life.
Overall though consultant-led master trusts saw some of the biggest gains, with both LifeSight (the master trust offered through WTW) and Aon growing their assets by more than 42 per cent.
The report also shows how 2024 was a record year for bulk transfers with nearly £10bn transferred – a 23 per cent increase on the previous year.
The Master Trust and GPP Defaults Report also details the performance of the 19 DC providers operating across the workplace sector, both at the growth phase and as they approach retirement, with detailed information about their asset allocations at each stage.
