Assets in Irish master trusts almost tripled in 2023, from €6bn to €16bn, as employers prepare for the government’s auto-enrolment regime, LCP’s first annual survey of Irish master trusts has shown.

The Irish defined contribution (DC) pension market is undergoing a period of mass consolidation, having once had the most occupational pension schemes in Europe at over 80,000.

In 2023, Irish master trust assets grew by €10bn as 2,019 employers moved to a master trust, bringing the total number of employers in master trusts to 3,344 and master trust members up from 160,500 to 315,600.

LCP projected that, by the end of 2024, master trust assets, employers and members will rise to €20.9bn, 4,234, and 378,800 respectively.

Of the more than 2,000 employers that switched to a master trust in 2023, 20 per cent transitioned to a new provider.

The largest employer to move to a master trust had €620m in assets, while the average was €4.8m.

“The master trust market has matured significantly in 2023,” said LCP partner, Martin Haugh.

“With the government’s auto-enrolment scheme due to commence in early 2025, it and master trusts will be the mainstay of pension provision for the next decade.

“It is important that employers are appropriately advised so that they can choose the best master trust for them in a sector that will become increasingly competitive.”

The survey also highlighted the range of factors that need to be considered by employers when choosing a master trust.

It found the most important factors to be: Engagement with pension savers, the costs to employers, and the range of investments that master trusts offer savers and how these perform over time.

LCP head of DC consulting, Kathy Keating, commented: “Choosing a master trust is a crucial part of many companies’ employee benefit and wellbeing packages. LCP is committed to helping employers choose the right master trust partner.”

---