Does CDC have to be a scheme for life?

PP looks at the attractions of pooling risk in retirement

Michael Klimes
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If there is one aspect of pension reforms in the UK about which pensions minister Steve Webb is most passionate it is probably collective defined contributions (CDC). At the Trades Union Congress (TUC) Pensions Conference Webb spoke of CDC in glowing terms. His rival, shadow pensions minister Gregg McClymont did the same. A powerful argument for CDC is that it pools risks and resources in a way that is attractive to members.

But there was a noticeable trend at the conference. While there were advocates of intergenerational risk sharing, a growing number of people wanted to focus on pooling longevity risk in retirement....

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