A new type of pension scheme has opened for applications in Britain - and it could mean more money for retirees.
Collective defined contribution (CDC) pension schemes offer a "middle ground" option between existing schemes. With defined benefit (DB) schemes, such as final salary schemes, employees are promised a guaranteed income, and with defined contribution (DC) schemes, which are more common nowadays, the saver bears the risk of how much pension they eventually end up with.
DB schemes have become increasingly rare as they are expensive to run with people living for longer. CDCs have the potential to provide improved retirement returns for savers, with more predictable costs for employers, the Department for Work and Pensions (DWP) said.
