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yesterday

UK to Lay Rules Expanding Collective Pensions as Ministers Launch Retirement CDC Consultation

Officials tout pooled schemes for higher average retirement incomes.

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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)
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Overview

  • The government confirmed regulations to widen access to collective defined contribution (CDC) schemes will be laid before Parliament on Thursday, 23 October.
  • Ministers opened a consultation on a retirement-only CDC option that would let savers transfer defined contribution pots into a CDC at retirement.
  • CDC pooling is billed as enabling longer-term investment and potentially boosting average retirement incomes by up to 60%, according to government claims.
  • Payments from CDCs can fluctuate because they do not guarantee a fixed income, prompting calls for strong protections and clear scheme design.
  • Pensions UK and The Pensions Regulator welcomed the direction and urged public engagement in the consultation, with the Royal Mail plan cited as a working example.