UK. MPs call for collective defined contribution pensions
MPs have encouraged the government to seek innovation and the “great potential gains” of collective defined contribution pension schemes, a report published this morning by the work and pensions committee says.
The committee says the schemes, which are already highly successful in Denmark and the Netherlands, offer advantages of a middle ground between defined benefit and defined contribution pension schemes.
CDC pensions – which are not yet available in the UK – offer regular retirement income but in the form of target benefit rather than a guarantee.
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