The economic uncertainty generated by Covid-19 is likely to cause a large number of defined contribution (DC) schemes to move into master trusts, according to PP readers.
Respondents to a Pensions Buzz poll on 25 June said master trusts were a cost-efficient choice for sponsors following the economic turmoil caused by the Covid-19 pandemic and offered better drawdown options for members.
Just under half (45%) of respondents - a mixture of trustees, scheme sponsors, investment managers and consultants - said a large shift into master trusts was likely, ahead of 32% who disagreed and 23% who were unsure.
One respondent who did believe many DC schemes sponsors would choose to move into mastertrusts said better governance at lower costs was on the table. Another added: "Coronavirus has brought a fundamental understanding of pension benefits in the future."
A third said the regulatory hurdles and flexible drawdown options made the move an "obvious option" for many DC schemes.
A total of 9.1 million British workers are currently on the government's furlough scheme as at 14 June; it is set to close to new entrants this week. Chancellor Rishi Sunak has said employers will be expected to pay a proportion of furloughed staff costs from August, which will include pension contributions.
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