Master trusts are showing evidence of improved service standards and broadening their decumulation options, although no provider has yet provided a complete package, according to a report by LCP.

The latest report in LCP's Master Trusts Unpacked series covered analysis of pension providers managing more than £700bn in assets and representing 85-90 per cent of the market.

According to the data, seven providers surveyed had a default of over £25bn, as at 31 December 2025.

The report said that member service quality had improved, with generally strong performance on administration and support metrics, even as competition intensified.

Similarly, decumulation solutions were beginning to take shape, with providers developing a range of approaches.

The government indicated that by 2027, master trust trustees are expected to have a default decumulation solution in place for members with defined contribution (DC) benefits.

However, beyond the underlying decumulation product and investment solution, LCP said the more important factor was the overall support available to members.

Therefore, so far, no provider has appeared to offer a complete package.

Responding to the report, LCP partner, Rachel Crowther, said it was good to see there has been an improvement in service standards for members across the market.

“The most notable area of development in the market over the last year has been the evolution of decumulation options, and we encourage providers to further develop broader support solutions for members.

“We expect continued progress in 2026, particularly in post-retirement, as the 2027 deadline for a default approaches and master trusts providers work to develop credible solutions.”

Yesterday, the Pensions Administration Standards Association (PASA) published guidance on the implications of the default retirement reforms.

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