FT AdviserFeb 3 2025

How do CDC pension schemes work and what are the benefits?

After engaging with this content, which carries an indicative 30 minutes of CPD, you will be able to:

  • Describe how collective defined contribution pension schemes work
  • Explain CDC schemes' approach to risk
  • Describe the different types of CDC schemes
  • Describe how collective defined contribution pension schemes work
  • Explain CDC schemes' approach to risk
  • Describe the different types of CDC schemes
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Approx.30min
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Approx.30min
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How do CDC pension schemes work and what are the benefits?
© (Chris Ratcliffe/Bloomberg)Royal Mail launched the UK’s first collective defined contribution pension scheme towards the end of last year
Kathryn Fleming

Collective defined contribution pension schemes have been around in various forms in other parts of the world, but they are a new feature in the UK. 

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