Aon has launched a new tool for trustees and scheme sponsors to help them explore how a collective defined contribution scheme (CDC) might meet their future needs.
The tool is designed for those running both DB and DC schemes. It comes in the form of a simplified quiz asking 10 questions of those currently running pension schemes. Based on the answers to each of the questions, respondents can also establish which ‘flavour’ of CDC might be suitable for their circumstances.
Aon partner and head of CDC Chintan Gandhi says: “Now that CDC schemes are a real option, we are seeing an increasing number of industries, organisations and pension schemes looking to gain a greater understanding of this innovative approach.
“They want to see whether it might be suitable for them – and, if so, in which form. There is a growing awareness that CDC provides pension savers with access to an income for life in retirement, and from fixed-cost DC savings – all without having to make complex financial and investment decisions.
“Our online quiz is a quick and simple way of navigating the CDC options that will emerge. Some flavours of CDC are likely to be more appropriate for different industries, organisations and schemes – whether they currently offer just DB, just DC, or, as with many, a combination of both. The way you answer our quiz gives a steer towards the flavour of CDC that could help address your specific needs over time.”
This new tool, ‘Is CDC right for my scheme?’ is available here.