This report explores how pension provision is evolving for the next generation. With Defined Contribution (DC) now the dominant model and Collective Defined Contribution (CDC) entering the UK market, sponsors and trustees must rethink what “good” looks like in retirement.
The report compares CDC and DC across five key areas: member outcomes, fairness, communication, ease of retirement, and meeting individual needs. It offers a practical framework to help decision-makers choose the right solution for their workforce.
Key Insights
With new multiemployer CDC schemes and innovation in DC, now is an essential time for sponsors to review future pension arrangements for their savers.
CDC could deliver savers up to 50% more income in retirement compared to traditional annuities. But innovations in DC drawdown strategies may bridge half or more of that gap.
This means wider factors such as needs in retirement, fairness, communications and member experience are also key. What is best for your savers?
