A minority (13%) of trustees and corporate sponsors predict their organisation is "likely" or "very likely" to adopt a collective defined contribution (CDC) scheme by 2025, Willis Towers Watson finds.
In a webinar of 76 organisations in March, the consultancy found, however, that just over a third thought their scheme members would struggle to understand the nature and variability of CDC pensions. Another 58% thought master trusts would be the most suitable form of pensions delivery.
It also found that two thirds of respondents would prefer to offer a pension providing a regular income throughout retirement rather than a pension pot that can be accessed flexibly.
The study comes as the government gave the green light to CDC last month, starting with the Royal Mail scheme and then rolling it out more widely.
According to Willis Towers Watson, the organisations expecting to provide CDC by 2025 currently have a range of pension arrangements in place - defined benefit, DC or a mixture of the two.
It added that "this indicates that initial appetite for CDC could come from employers with a variety of current arrangements".
Retirement business senior director Simon Eagle said the fact that most organisations would like to provide their employees with a regular income in retirement rather than a flexible pension pot "suggests there may be further appetite for CDC provision in the longer term".
The government has been working closely with Royal Mail and the Communication Workers Union to develop proposals for CDC which went out to consultation last November.
The DWP has said it will introduce an authorisation regime for CDC schemes, overseen by The Pensions Regulator, similar to the one for DC master trusts which was introduced last October.
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