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10 Feb 2026

What is a master trust?

If you have a workplace pension, there's a good chance it's a master trust - a type of pension scheme used by multiple employers. Here's how they work.

Paul Davies

Paul has long worked in financial services research, currently specialising in pensions and retirement planning.

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How do master trusts work?

A master trust is a type of defined contribution pension that's used by multiple employers - with independent trustees who look after pension savings on behalf of all the employees who are members.

So you might find that you have the same pension as your friend, even though you work for different companies.

Although the independent trustees have overall responsibility for the scheme, your employer can still make decisions about contributions, investments, and benefits.

All master trusts must be authorised by The Pensions Regulator and are subject to regular reviews by the regulator.

How much can you pay into master trust pensions?

As with other workplace defined contribution schemes, if you're part of a master trust you and your employer must pay in a percentage of your earnings.

The government sets the minimum level of contributions, which is a total of 8% of your earnings between £6,240 and £50,270.

This is made up of 5% from the employee and 3% from the employer.

Like other pension schemes, you'll receive tax relief on pension contributions. So the minimum employee contribution is effectively 4% with the government adding 1%.

If you can afford to increase your contributions above the minimum, or make one-off payments into your pension, it's well worth doing so.

Other people, such as family and friends, can also pay into the scheme on your behalf.

Find out more: how to boost your pension

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What are the main master trusts in the UK?

Nest

Nest (short for National Employment Savings Trust) is the UK's biggest master trust, with over 13 million members and 500,000 employers signed up.

Its charges are made up of two parts:

An annual management charge of 0.3% on the total value of your pot
A contribution charge of 1.8% on each contribution. This means that for every £50 you contribute, £49.10 is paid into your pension.

Nest offers a choice of six investment funds, including an ethical fund and a Sharia fund, but the flagship Nest Retirement Date Fund is the one the vast majority of members are in.

Nest adapts the investment strategies of its Retirement Date Funds over the years, tailoring them to members' life stage in four phases.

People's Pension

The People's Pension has over seven million members and is used by over 100,000 employers.

Its annual management charge is made up of three parts:

A fixed charge of £4.50
A management charge of 0.5% of the value of your pension
A rebate of between 0.1% and 0.3% for saving over £3,000

The People's Pension offers three investment profiles: 'balanced', 'cautious' and 'adventurous.' These all automatically start switching from higher-risk investments into lower-risk investments from 15 years before your chosen retirement date.

Your money is automatically placed into the balanced profile unless you request for it to be moved.

Alternatively, if you want to make your own investment decisions, you can choose from eight investment funds.

Now: Pensions

Now: Pensions has over two million members and is used by over 20,000 employers.

It levies two separate charges:

An annual investment management charge of 0.3% on the value of your pension
A monthly administration charge of £2

Now: Pensions offers six investment plans and one investment fund. The plans are designed to grow your savings over most of your working life. Then, 10 years before your planned retirement age, your savings move into investments designed to prepare your money for retirement, including reducing investment risk.

When you join the scheme, your money is automatically placed into the 'lump sum' plan.

Smart Pension

Smart Pension has more than a million members across 90,000 employers.

It levies two charges on your pension:

An annual management charge of 0.3% on the value of your pension
A monthly fee of £1.75 (waived if account is worth £100 or less)

When you join the scheme, Smart Pension will invest your money in line with its investment strategy, which involves moving your money to a mix of lower risk funds as you approach retirement age.

If you want to make your own investment decisions, Smart Pension offers a choice of 16 investment funds.