CDC support grows; one fifth of businesses considering use

Spurred by Royal Mail CDC scheme

Holly Roach
clock • 2 min read

Support for collective defined contribution (CDC) schemes is growing with more than a fifth of businesses now considering using it for their own employees, according to the Association of Consulting Actuaries (ACA).

The firm's 2021 Pension Trends Survey revealed more than half (58%) of survey respondents support extending CDC beyond the Royal Mail scheme, to allow industry-wide and multi-employer while 21% of businesses are interested in CDC for their employees. It also found 54% support its extension to allow industry-wide and multi-employer CDC schemes, this is up eight percentage points compared to the firm's survey last year. The report also found 25% would consider a CDC master trust for both accumulation and decumulation. The ACA's research found contributions into ‘traditional' defined ...

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