WTW is set to acquire the UK’s Cushon master trust from NatWest Group, adding almost £4bn (€4.6bn) in assets under management (AUM) and 730,000 members to WTW’s portfolio.
Lifesight, WTW’s defined contribution (DC) master trust, has over £26bn in AUM and 430,000 members.
The deal adds new capability and bolsters WTW’s position in the UK DC master trust space, enhancing its capabilities and unlocking new growth opportunities in UK mid-size workplace pensions and savings.
The agreement includes a referral arrangement enabling NatWest’s commercial banking customers to continue to have seamless access to Cushon’s workplace pensions and savings services for their employees.
The deal highlights the ongoing trend towards providers seeking to achieve greater scale and efficiency, enabling them to better serve customers and generate higher returns for savers.
According to WTW, the master trust industry grew by around 35% in 2024 and is anticipated to average around 18% growth per year over the next decade.
Julie Gebauer, WTW’s president of health, wealth and career, said that the acquisition of Cushon will enable WTW to serve all segments of the rapidly growing master trust space, with LifeSight continuing to focus on large companies and Cushon enabling growth in the mid-market.
She said: “Cushon has built a groundbreaking technology-led solution that is highly scalable and has enjoyed great success.
“This acquisition opens possibilities to help a wider range of clients and support their members improve their financial futures.”
Ben Pollard, founder and chief executive officer of Cushon, added: “With our leading-edge market propositions, WTW’s strong capabilities, and NatWest’s enviable distribution, all the ingredients are in place to accelerate our next phase of growth.”
Consolidation
Steve Charlton, managing director of DC, EMEA and Asia at SEI, pointed out that consolidation in the master trust market is not a new phenomenon.
SEI has been actively consolidating for years, acquiring Atlas in 2021 and National Pensions Trust in 2023.
He said that the recent government interventions may have prompted some providers to reassess their position, but they did not initiate this trend.
“The drivers behind consolidation are broader – focused on delivering better member outcomes, operational resilience, and long-term sustainability. Scale can bring advantages, but it’s not the sole determinant of success; expertise and robust governance remain critical,” Charlton noted.
Smart Pension has also been actively consolidating, targeting £10bn in AUM in the first half of 2026.
Earlier this week, it completed a bulk transfer of assets and members from the Options Workplace Pension Trust (OWPT) into the Smart Pension Master Trust, which brought an additional £650m in AUM.
In November, Smart also bought £580m WS Stakeholder Pension Scheme from Waystone Management.
Philip Smith, DC director at TPT Retirement Solutions, said: “The UK market is already highly consolidated, far more than Australia or Canada, with most master trusts already at the scale needed to support investment in private market assets.”
He echoes Charlton’s thoughts: “Wider forces driving consolidation include regulatory costs, fee pressure, rising expectations around private markets, and employer demands for sophistication. We believe the UK can meet policymakers’ objectives within the existing master trust landscape, without the need for megafunds.“
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