CDC announcement will herald ‘exciting range of new decumulation options for next generation of retirees’

Speaking yesterday at LCP’s DC and Financial Wellbeing conference, the Pensions Minister confirmed his commitment to multi-employer CDC schemes with regulations due to be laid in the Autumn.

LCP Head of CDC Steven Taylor said: “It was brilliant to hear the minister’s vision for how new CDC schemes can significantly improve member outcomes, unlock productive investment and come at no extra cost to employers.

“We couldn’t agree more and LCP stochastic analysis presented earlier in the day illustrated how we believe multiemployer CDC can improve retirement incomes by up to 50% compared to traditional annuities. This really could be a case of “better for members, better for sponsors and better for society”

LCP Partner Helen Draper added: “We now look forward to an exciting range of new decumulation options for the next generation of retirees. For some, continued improvements to drawdown will make these solutions compelling. But for many large groups of members we believe the improved potential outcomes and member experience of CDC mean Trustees and Sponsors will now need to now think about how to incorporate CDC into their strategies”