Commenting on the publication today of a Work and Pensions Committee report into Collective Defined Contribution pension schemes, Rob Yuille, Head of Retirement Policy at the Association of British Insurers (ABI), said:
“The idea of a simple change that will generate excellent outcomes for all is always tempting but rarely true. While a CDC scheme may be the right approach for Royal Mail, it is unclear what benefit there would be in making them widely available. Far from being a silver bullet, establishing the rules for these schemes would be a major undertaking at a time when Government already has a large number of policy commitments that it should be prioritising, and would add yet more complexity for consumers.”