Collective DC decumulation appeals to a third of future retirees

When compared to annuity and drawdown options

Jasmine Urquhart
clock • 2 min read

Nearly a third (30%) of UK savers said they would prefer a collective defined contribution (CDC) option for decumulation over annuity or drawdown, Aon and Aegon research has found.

The survey of 1,150 customers in June and July last year found when first asked about drawdown options, two-thirds (67%) preferred income drawdown while one-third (33%) preferred the option with annuity features. Once shown information about CDC features, half (49%) of those who initially chose annuities preferred the CDC option, while the other half chose to remain with their first choice. Those aged 55 and over were slightly more likely to prefer an annuity (56%) than the overall sample, and those with lower levels of wealth were more likely to prefer the CDC option. Out of those...

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