Kim Nash: One of the things that excites me the most with CDC is the opportunity to move complex decision making from members back to trustees
In the latest instalment of Alison Hatcher’s Trustee Voice series, she speaks to Zedra Governance managing director Kim Nash about how collective defined contribution (CDC) schemes may help bridge the gender pay gap.
For decades, the gender pension gap has been discussed as an unfortunate shadow of the pay gap. While we focus on the 15-30% difference in career earnings, we often overlook the compounding tragedy – a retirement wealth gap that can reach a staggering 75% by age 60. According to 2026 Department for Work and Pensions data, the median defined contribution (DC) pot for men is £75,000, while for women it languishes at just £19,000.
As a working mother and trustee, I see the human cost of this every day. The current individualistic DC system – a solo sport where the member bears every risk – is inherently weighted against the female career path. Women are more likely to take career breaks or work part-time, which currently results in a penalty where their savings simply stop growing. Because women live longer but have smaller pots, they face a decade-long risk of outliving their money compared to men.
However, the tide is turning. With the arrival of collective defined contribution (CDC) schemes, we finally have a middle way designed for real lives. I am lucky enough to sit on an all-female trustee board with Kim Nash of Zedra, and to speak to her about the gender pay gap.
A new philosophy in governance
The shift toward CDC isn't just a technical change; it's a shift in perspective. Kim Nash – the chair of the UK's first all-female multi-employer CDC board (of which I am also lucky to be a part) – believes this new structure allows for a more empathetic approach to management.
Nash notes that leading an all-female board brings a unique technical outlook where questioning and debate constantly return to the core question: "What would this feel like for a member?".
"We are balancing the actuarial, investment, and legal decisions alongside how those would be ultimately communicated to members," Nash explains, adding this is particularly vital for the pension pay gap, as the board is "actively thinking about the governance frameworks we put in place to counter intergenerational fairness and inequalities in the decisions we make around benefits" for those with non-linear careers.
Breaking the individualism trap
One of the most significant burdens of the traditional DC model is the so-called complexity tax – the expectation that members must become amateur investment managers. For many women, who statistically value financial security over playing the market, this burden is a deterrent.
Nash identifies this as a primary area for improvement. She says: "One of the things that excites me the most with CDC is the opportunity to move complex decision making from members back to trustees".
She says that, by removing the need for members to manage longevity and investment risks individually, CDC provides an income that is gradual and stable rather than jumping with volatile markets. As Nash points out, this income for life mindset allows members to "focus on planning, living, and enjoying their retirement rather than worrying about how much to spend and when".
Designing for the collective
With the new unconnected multi-employer scheme (UMES) regulations arriving in July 2026, the industry is moving toward mega-schemes – an area I spoke about with Chris Noon of Aviva in our last article. While these schemes are "collective by design", Nash emphasises that the human element must remain central. "The hardest balance is simplicity versus fairness," she remarks, noting that the member voice will be a critical input for designing the experience.
The ultimate goal is to move beyond the abstract pot of money and build confidence.
Nash argues that while policy changes are needed to support those in part-time or low-earning roles, it is the trustee's behaviour that impacts the final outcome. "Communications need to be inclusive for all," she insists, advocating for personalisation and technology to meet a diverse set of needs.
By pooling risk and returning the burden of management to experts, CDC offers more than just a financial product – it offers women the certainty they need for a longer life expectancy.
As Nash concludes, building this confidence is what will finally enable the next generation to save meaningfully for their future.
Alison Hatcher is chief client officer at Vidett
