The IFoA supports the Work and Pensions Committee’s second stage report on its inquiry into accessing pension savings, which has confirmed its continued support to develop Collective Defined Contribution (CDC) schemes.
IFoA pensions board chair at the institute and faculty of actuaries Leah Evans says: “We are pleased to see the recommendation in today’s report from the Work and Pensions Committee that the Government should continue to support the development of CDC schemes in the UK. CDC schemes are a potential innovation for pension savers and this report is a further welcome step in developing practical, innovative schemes for willing employers in the UK.
“The Committee’s inquiry continues to shine a light on the challenges that exist for the modern pension saver and to offer solutions. We look forward to continuing this debate and the consideration of issues like the viability of multi-employer CDC schemes.”
The IFoA also supports the government’s response on a stronger nudge to pension guidance.
Evans adds: “We support the view that a stronger nudge is beneficial for pension savers in the UK. Providing more Pension Wise advice sessions before retirement will help consumers to consider the pros and cons of drawdown and the opportunity to better understand which product will best meet their needs.
“In our Great Risk Transfer report, the IFoA recommended specific and ambitious targets to achieve an increase in take-up by individuals of Pension Wise appointments before accessing their pension. This announcement should help to generate more Pension Wise appointments and lead to better outcomes for pension savers.”