CDCs: The new kid on the block

clock

Collective defined contribution has been causing a stir among employers and group schemes? What do advisers need to know about this new type of pension?

Last month’s Queen’s Speech rubber-stamped the introduction of collective defined contribution (CDC) plans. This type of defined contribution pension basically pools risk in large defined contribution schemes set up to pool a particular group of employers. The schemes are so large (usually with thousands of members) that the scheme benefits from economies of scale. In addition, the size of the CDCs often mean members can access investments they would be unable to do so on an individual basis and so have the opportunity for higher returns. Performance is based on the members and invest...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why documentation is king in the world of SSAS

Why documentation is king in the world of SSAS

'SSAS documentation - it isn't just best practice or a fiduciary requirement'

Caitlin Southall
clock 04 July 2025 • 4 min read
Steve Webb: Sceptical advisers should not give up on pensions dashboard

Steve Webb: Sceptical advisers should not give up on pensions dashboard

‘A big mistake to underestimate the impact it will have’

Jenna Brown
clock 03 July 2025 • 3 min read
What role can advisers play in closing the gender pension gap?

What role can advisers play in closing the gender pension gap?

Advisers are uniquely placed to influence the gender pension gap

Olivia Perry
clock 02 July 2025 • 7 min read