US EditionGovernment green-lights ‘collective’ pension schemes
The UK Government aims to boost retirement incomes by up to 60% through expanded collective defined contribution pension schemes pooling employer funds.
- The UK Government will lay regulations to expand collective defined contribution schemes and launch a consultation on retirement CDC to allow DC pots to transfer into CDCs.
- Pensions minister Torsten Bell framed the changes as a way to share risks and smooth returns, saying pooling pension schemes creates collective defined contribution funds that pay workers a regular income for life, the Government says.
- Collective CDC schemes could boost incomes by up to 60%, with the Royal Mail Collective Pension Plan, which has more than 100,000 members, providing a key precedent.
- Pooling funds lets schemes make larger investments in UK businesses and infrastructure, which the UK Government says can help drive economic growth and build saver confidence.
- Experts say success hinges on balancing protections, simplicity and fairness as David Brooks calls CDC divisive, while regulation details will determine whether employers take the leap.
12 Articles
12 Articles
Retirement Incomes Could Increase By 60% With 'Collective' Pension Schemes
Millions of workers across the UK could see their pensions increase by up to 60% as new regulations for Collective Defined Contribution (CDC) schemes are set to be laid. Unlike Defined Contribution (DC) schemes, CDCs pool pension schemes into a collective fund giving workers regular pension payments for life, more security and higher average retirement incomes throughout retirement when compared to individual pension pots. The new regulations wi…
international-adviser.com
investment-international.comUK government gives green light to expand CDC pension schemes
The UK government is set to announce new regulations allowing for the expansion of collective defined contribution (CDC) pension schemes. CDC schemes allow employers to pool multiple pension schemes into a collective fund, which the government said gives workers regular pension payments for life, more security and higher average incomes throughout retirement when compared with individual pension pots. In a statement, the government said millions…
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