Pensions - Articles - Partnership comments on Collective DC schemes

 Commenting on today’s announcement that Collective Defined Contribution Schemes (CDCs) are to become an option for work place pension saving, Mark Stopard, Head of Product Development at Partnership, said:

 “Over the last few years, the UK pensions market has undergone arguably some of the biggest changes in its history – with today’s announcement adding further diversity to the mix. This move is to be welcomed as it demonstrates further innovation and a genuine commitment to providing better consumer outcomes.

 “However, we need to ensure that rather than simply copying the Dutch model, we recognise the UK market poses different challenges and consider how we can learn from their mistakes. One possible solution is to look at ways in which we can adapt the CDC model by using areas of expertise where the UK is arguably a world leader such as individual underwriting of longevity risk that underpins the current enhanced annuity products.

 “As usual, the devil will be in the detail and we await further information as to how these product might operate in the UK market.”