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 ...

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

Holly Roach
Author spotlight

Holly Roach

News Editor at Professional Pensions

More on Pensions

New pensions minister: Advisers cautiously welcome 'radical thinker' Torsten Bell

New pensions minister: Advisers cautiously welcome 'radical thinker' Torsten Bell

Former CEO of Resolution Foundation takes over pensions minister brief

Jenna Brown and Isabel Baxter
clock 15 January 2025 • 7 min read
Retirement confidence: Why are women still lagging behind?

Retirement confidence: Why are women still lagging behind?

'If we don't do better, the gender pensions gap won't be closing any time soon'

Laura Barnes
clock 14 January 2025 • 4 min read
Administrators reach sale deal for PSG's Unity SIPP

Administrators reach sale deal for PSG's Unity SIPP

Scheme operated around 5,500 SIPPs

Jen Frost
clock 10 January 2025 • 2 min read