Reacting to the news today that plans to allow workers to contribute to Dutch-style collective pensions are to be unveiled in the Queens Speech this Wednesday, Danny Wilding says:
I would certainly welcome any plans which would allow Collective Defined Contributions (CDC) to become a reality in the UK. If the Budget’s proposed relaxation of rules for people retiring from defined contribution schemes goes ahead next year, there will be a real need to introduce new types of scheme which can take full advantage of the new rules.
For many people defined contribution schemes will now operate purely as a retirement savings account, whilst the likelihood of employers opening new defined benefit schemes is slim. CDC offers a viable alternative to employers who wish to help support their staff’s retirement, and strikes more of a balance between employee and employer responsibility for pension arrangements.