On the day that Collective defined contribution (CDC) schemes have officially opened for applications, Steven Taylor, LCP Partner and Chair of the Association of Consulting Actuaries (ACA) commented: “We believe CDCs have potential to be transformative for UK pensions, offering a genuine third way between traditional defined benefit and defined contribution schemes. 

"There will be challenges in scheme design and in member communications.  However, especially in these current times of high inflation, CDC’s offer the potential to help a new generation of employees target good quality incomes in retirement that are a step up from the defined contribution schemes that are currently typical in the private sector.   We know many large employers are watching this space with interest and will be keen to chart the successes of the first schemes that are expected to emerge in the next year.”