NatWest Group has engaged in discussions to sell Cushon, the workplace pensions provider it bought in 2022 for GBP 144 million.
The bank is working with advisers as it reviews options for the business, according to people familiar with the matter cited by Sky News. Cushon operates workplace pensions and individual savings accounts (ISAs), including Lifetime, Junior and general accounts. The company has around 650,000 members and partnerships with 21,000 employers. Its master trust manages close to GBP 3 billion in assets, generating nearly all of its GBP 17.4m in annual revenue last year. NatWest holds an 85% stake, with the remainder owned by Cushon’s management team.
Government reforms and market consolidation
Industry sources indicate that several potential buyers, including established pension providers, have expressed interest. The talks come at a time when the UK government is looking to consolidate the pensions sector. Recent reforms aim to reduce administrative costs and ensure defined contribution schemes manage at least GBP 25 billion in assets by the end of the decade.
NatWest originally acquired Cushon to expand its fee-based income by distributing its products through the bank’s commercial and business channels. However, the possible divestment reflects a shift in strategic priorities. Bank officials have emphasised efforts to simplify operations and exercise better control over the balance sheet and risk management.
The bank has explored selective acquisitions in recent years, including discussions around Santander UK, though such efforts did not advance due to pricing considerations according to Sky News. NatWest also completed its return to full private ownership earlier in 2025, following the government’s disposal of its remaining stake from the GBP 45.5 billion bailout of Royal Bank of Scotland in 2008.
A NatWest spokesperson declined to comment on the potential sale, reiterating that its current focus is on serving customers.
