New scheme for ‘better' pensions

A GAME-changing “third way” for workplace pensions could soon be offered across the UK.

- David Williamson

Collective Defined Contribution (CDC) schemes are designed to give savers greater security combined with a better return on their investment.

They provide stronger protection against economic shocks – such as a pandemic – and also help people save towards a clear target income.

Royal Mail plans to roll out the pioneering scheme for more than 100,000 of its employees.

The Government, which sees CDC schemes as a game-changer, is launching a consultation tomorrow to finalize details of how they will work.

That will pave the way for other UK firms to offer the schemes to their employees.