CDC schemes 'must be explicit about potential risks', PPI says

Warning from the Pensions Policy Institute

Hope William-Smith
clock • 3 min read

Collective defined contribution (CDC) schemes must clearly communicate to members how the model may put their income and benefits at risk of reduction, the Pensions Policy Institute (PPI) says.

In a briefing note published yesterday (14 June) the institute compared CDC models in the Netherlands, Denmark and Canada with plans for the introduction of CDC in the UK from this August, including a particular focus on the need for transparent and comprehensive member communications. The PPI warned that "the extent to which communications are effective" within CDC schemes was likely to inform the level of trusts members hold within the scheme overall. Senior policy researcher Lauren Wilkinson said: "Because of the variable nature of benefits within CDC schemes, clear communication a...

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

AJ Bell sells Platinum SIPP and SSAS business in £25m deal

AJ Bell sells Platinum SIPP and SSAS business in £25m deal

InvestAcc Group takes over £3.2bn book of business

Jenna Brown
clock 27 March 2025 • 1 min read
Spring Statement 25: 'As you were' following pensions exclusion

Spring Statement 25: 'As you were' following pensions exclusion

Pensions were notably lacking from today's Spring Statement

Holly Roach
clock 26 March 2025 • 4 min read
Majority of pension savers would use digital advice from providers

Majority of pension savers would use digital advice from providers

Some 73% of workplace pension savers want advice from providers

Jenna Brown
clock 24 March 2025 • 2 min read