Particle.news
Download on the App Store
7 ARTICLES
·
2mo ago

UK Lays Rules to Expand Collective Pensions and Opens Consultation on Retirement Transfers

Officials tout up to 60% higher average incomes with payments that can still fluctuate.

Image
Image
The move to introduce larger, collective pots would increase pensions by as much as 60 per cent, the Government said, as well as providing better income security (Photo: Alamy/PA)
Image

Overview

  • The Department for Work and Pensions laid regulations before Parliament to allow unconnected multi‑employer Collective Defined Contribution schemes.
  • A separate consultation proposes a retirement‑only CDC so defined contribution savers can transfer their pots at retirement into a trustee‑run collective income, with responses due by 4 December 2025.
  • Ministers say pooling funds could enable larger, longer‑term investment in UK businesses and infrastructure.
  • Industry groups and the pensions regulator welcomed the direction but urged strong member protections and simple, fair scheme design.
  • Government research reports that nearly three‑quarters of DC savers want a guaranteed income even though around half of pots are currently taken as lump sums.