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...

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

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
TPR cross-sector working group initiative to 'bring pensions into the digital age'

TPR cross-sector working group initiative to 'bring pensions into the digital age'

Regulator intends it to be a ‘pivotal force’ in shaping the future of pensions

Holly Roach
clock 02 July 2025 • 3 min read
Why the real problems of the pensions dashboard are yet to start

Why the real problems of the pensions dashboard are yet to start

'Its aims seem not only less relevant but potentially problematic'

James Floyd
clock 23 June 2025 • 5 min read