Commenting on the announcement that the government plans to consult on CDC expansion, Malcolm Reynolds, Aptia's UK President, said: “CDC has the potential to improve member outcomes by as much as 30% or more and creates an opportunity to address pensions inadequacy through scheme design rather than simply mandating increased contributions at a time when many employers and individuals can ill afford it.
“It also means we do not need to wait for the new Pensions Commission to report back and for the government to legislate on automatic enrolment reforms - something unlikely to happen before the next parliament.
“Furthermore, CDC can help address the issue of engagement. Savers just want an income in retirement, as close to that income they are used to in work, with as little input on their part as possible.
“CDC, while DC in law, looks and feels like a traditional DB pension to the lay person. Communication is essential, given that benefits are targeted, but CDC can facilitate better returns than a traditional form of DC workplace pension to employees, who will be grateful for the pension they receive in retirement and the way it is delivered.”
NOTES TO EDITORS
- Founded to shape the future of pensions, health, and insurance solutions, Aptia is a leading UK pensions administrator and US employee benefits administrator dedicated to simplifying complexity for businesses and individuals. It brings together cutting-edge technology and deep industry expertise to help organisations navigate an evolving landscape with clarity and confidence.
- With a presence in the US, UK, India, and Portugal, Aptia supports over six million people and more than 1,100 clients, delivering solutions that drive efficiency, enhance financial security, and provide peace of mind.
- Aptia’s strength lies in the combination of smart technology and expert teams, ensuring that managing pensions, health, and insurance is more effective. By focusing on innovation, accessibility, and client success, Aptia helps businesses take care of their people, so they can focus on what they do best.
For more information contact: Corinne Gladstone, Aptia Head of Corporate Communications & Public Relations.
