More UK firms eye collective DC pensions
With the UK’s Department for Work and Pensions (DWP) working to pass legislation to roll out collective defined contribution (CDC) pension schemes, several firms are considering them for their employees.
Around one in eight (13%) corporate pension scheme decision-makers believe that their company is either likely or very likely to adopt CDC schemes in the coming six years, according to a recent survey of by global corporate advisory firm Willis Towers Watson.
That is, of course, provided the DWP’s legislation goes through.
In fact, Royal Mail and the Communication Workers Union have already enquired about the requirements needed to provide CDC schemes for their staff.
Willis Tower Watson’s research found that, while the majority of firms offer individual DC pension schemes, 66% of participants prefer a solution that would allow them a regular income rather than a pension pot.
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