Aon will launch a whole-life multi-employer CDC section with its master trust, with a view to this being available from 2028.
It is the latest provider to announce its CDC ambitions after legislation to allow these new multi-employer schemes came into effect at the end of July.
Companies wishing to launch a multi-employer CDC need to register proposals with The Pensions Regulator for regulatory approval.
Aon says that this CDC section will sit within The Aon MasterTrust. Aon says that employers will have the option of defaulting their employees contributions into the CDC plan, into the regular DC section, or will be able to offer employees a combination of the two. It says this latter option would enable employees to make a selection based on their own preference, including paying in additional voluntary contributions to either or both sections.
To date, Royal Mail is the only employer to offer single employer whole-life CDC plan. But but since Government started the legislative process to allow providers to offer multi-employer CDC, TPT Retirement has announced plans to also launch a CDC, with WTW saying it plans to offer a retirement-only CDC option via its LifeSight master trust, once the regulations for these are in place.
Whole-life CDCs cover both the accumulation and decumulation stage, and are designed to enable workers build up an income for life in retirement, so avoiding the need to make complex decisions at retirement when it comes to converting a savings pot into an income stream.
Unlike DB schemes this retirement income is not guaranteed, but CDCs have been set up with the aim of offering a lifetime income that keeps pace with the rise in the cost of living.
Aon UK chief investment officer, DC solutions Jo Sharples adds: “Collective investment and long-term horizons allow CDC schemes to stay meaningfully invested in growth assets, including private markets, all the way up to and through retirement.
“CDC schemes can therefore invest more productively and support responsible, sustainable outcomes – helping to deliver the kind of world current and future generations want to retire into.
“We are proud of The Aon MasterTrust’s decade-long performance track record – it was top in Corporate Adviser’s 2026 assessment of default funds’ performance over the past 10 years and has delivered great returns to its members. We are excited to bring this experience and Aon’s wider resource and deep research capabilities to the benefit of even more pension savers, as we unlock a wider set of investment opportunities through our whole-life multi-employer CDC section.”
Aon partner and head of collective DC Chintan Gandhi adds: “Whole-life CDC pensions provide a powerful tool to attract, reward, retain and retire employees on time, and which strengthens the employee value proposition in competitive labour markets. We believe that CDC could revolutionise pensions in the UK, creating value for both employees and employers.
“We are now looking to continue our engagement with a wide range of employers, sectors and unions in the UK, including seeking feedback to help shape our plans for CDC.”
Aon head of EMEA wealth solutions Michael Clare says: “Aon was involved throughout the process that brought this new type of pension scheme into existence, so we are particularly excited to announce our intention to launch a whole-life CDC section within The Aon MasterTrust.
“CDC is an innovation that helps address the evolving needs of our clients and their employees. Offered alongside DC, it ensures we are introducing CDC in a way that caters effectively for the differing needs of our individual clients and their workforces.
“As we also continue to explore the future introduction of Retirement CDC within The Aon MasterTrust, we eagerly await the initial draft Retirement CDC regulations which are expected this autumn.”
Aon has recently published a report on CDC schemes for advisers and employers: CDC Pensions – Everything You Need to Know in 2026.
