If you are retirement planning in Cheshire, the Department for Work and Pensions (DWP) has unveiled plans to extend the scope of collective defined contribution (CDC) pension schemes.
The government raised the prospect of extending CDC pension provision to whole-life unconnected multiple employer schemes and other related provisions. According to the DWP, there is enthusiasm across the UK pensions industry for extending CDCs, making them more accessible to people.
The Minister for Pensions, Emma Reynolds, said there was now an opportunity to modernise workplace pensions and boost investment in the UK.
The government is seeking industry opinion on fresh proposals to extend existing CDC schemes with a consultation that is running until 19 November. This will bring in views from experts, employers, pension providers and the general public on draft regulations to assess their potential impact.
It is hoped this will deliver improved value for pensioners while unleashing significant investment opportunities. The review of the £2.4 trillion UK pensions industry is a major feature of the government’s plans to improve retirement planning and reinvigorate the economy.
UK pension schemes currently only allocate 6% to private equity and infrastructure, set against 14% for Australian superannuation schemes and 34% for Canadian public sector schemes. The Chancellor, Rachel Reeves, has been studying these carefully.
For their part, The Pensions Regulator said CDCs have the potential to deliver improved financial outcomes for UK pension savers, turning pension pots into a reliable retirement income. The organisation stated that it looked forward to working with the government on a new regulatory regime.
