Unpicking potential CDC outperformance promises

Scheme design has smart features that ameliorate potential downsides

clock • 12 min read

Adrian Boulding explores the collective defined contribution pension landscape and sets out all the pros and cons advisers should know about...

Many of us have read about the sophisticated actuarial models that show the expected retirement income from a collective defined contribution (CDC) scheme is around one-third greater than that generated by a traditional defined contribution (DC) scheme and purchasing an annuity at retirement. That's undoubtedly great news for consumers, and especially relevant as the Department for Work Pensions prepares to release regulations on multi-employer CDCs this autumn, to be followed in the new year with regulations for decumulation-only CDC schemes. It is also relevant during a time when th...

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