Pension savers in defined contribution (DC) schemes could see their pots increase by a third if the government moved to introduce collective DC schemes, according to a report.
The RSA report, Collective Pensions in the UK II, said as a result of regulation standard DC pensions have become the only option for savers and they have suffered as a result. It said as defined benefit pensions "withered away" a new framework was urgently needed if people were to save adequately and effectively for retirement. As auto-enrolment sweeps across the working population most new pension savers will find themselves using a standard DC scheme. RSA wants the government to revisit the idea of ‘collective DC' where the risk of pension scheme investment is shared between sp...
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