Financial services giant WTW is to acquire the £4bn Cushon master trust from NatWest, the companies announced today.
The transaction – which is subject to regulatory approval – would be the largest acquisition of a defined contribution (DC) master trust and comes as the government is preparing to introduce a scale requirement through the Pension Schemes Bill, putting pressure on smaller providers.
The Cushon master trust caters for around 730,000 people and has almost £4bn in assets under management. WTW’s existing LifeSight master trust has more than £26bn in assets under management and 430,000 members.
“Given the broader changes within the pensions market, and the increasing importance of scale, both NatWest Group and Cushon believe the next phase of the firm’s journey will be most effectively achieved under the ownership of a larger, more established player in this space.”
Paul Thwaite, NatWest Group
Paul Thwaite, group chief executive officer at NatWest Group, said the deal was “aligned to our strategic priorities”, with the bank aiming to grow and simplify its businesses.
Thwaite added: “Given the broader changes within the pensions market, and the increasing importance of scale, both NatWest Group and Cushon believe the next phase of the firm’s journey will be most effectively achieved under the ownership of a larger, more established player in this space.”
Julie Gebauer, WTW’s president of health, wealth and career, explained that the two master trusts would serve different audiences, with LifeSight focusing on larger companies and Cushon “enabling growth in the mid-market”.
A spokesperson for WTW indicated that the two trusts would operate independently of each other, including running separate investment strategies.
“Cushon has built a groundbreaking technology-led solution that is highly scalable and has enjoyed great success,” Gebauer added.
“We’re delighted to welcome the Cushon team to WTW and excited by the capabilities they bring us for further innovation in workplace pensions and savings. This acquisition opens possibilities to help a wider range of clients and support their members [to] improve their financial futures.”
Ben Pollard, founder and chief executive officer at Cushon, said: “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.”
As part of the deal, WTW and NatWest have agreed a “referral arrangement”, which will allow commercial banking customers at NatWest to have access to the master trust and its related savings services.
NatWest owns approximately 85% of Cushon, with the remainder owned by senior Cushon management.
Consolidation of master trusts continues at pace
The news follows Smart Pension’s announcement that it had completed its acquisition of the Options Workplace Master Trust, bringing on board £650m of assets.
The deal was first announced in July 2024, and involves the pensions of around 300,000 people.
Last month, the master trust announced that it was set to acquire the WS Stakeholder Pension Scheme, a contract-based DC scheme, adding a further 19,000 people and £580m in assets.
As part of its aim to reach the government’s £25bn “megafunds” target for DC master trusts, Smart wants to reach £10bn in assets by next year. The completion of the Options deal brings its assets under management to £9.3bn.
Smart’s UK chief executive Jamie Fiveash said: “The master trust has grown sustainably in excess of 30% per annum for some years now. In 2026, we expect this to be no different, with strong momentum in both assets and membership, and a healthy pipeline of opportunities.
“As we grow, our focus remains on delivering outstanding value for savers and providing employers with a dependable, modern pension experience.”
