Collective defined contribution pensions (CDC)
If you’d like to talk about how CDC could work for your organisation, please get in touch with one of our team.
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CDC presents an opportunity to deliver better pensions for millions of savers.
We believe CDC has a major role to play in the future of UK retirement savings.
Turning that opportunity into a successful scheme requires careful design, strong governance and clear communication. If you'd like to talk about how CDC could work for your organisation, please get in touch with one of our team.
How we can help
CDC combines features of defined contribution (DC) and defined benefit (DB). Contributions are fixed, but benefits are paid as an income for life from a collective fund. Investment and longevity risks are shared across members.
We support clients across:
- Explore CDC design options and measure impact
- Detailed Scheme design and benefit optimisation
- Authorisation and implementation support
- Compare projected member outcomes for a range of benefit designs
- Model cost savings and / or benefit uplifts against your current design
- Assess CDC feasibility and implementation requirements
- Scheme Actuarial services
- Strategic asset allocation development
- Governance and design advice
How we do this
Our teams combine actuarial, investment and longevity expertise with active engagement across policy and regulatory developments.
Our CDC Applied Integrated Risk™ (AIR) model underpins our CDC design advice. CDC AIR™ is available under a licence agreement or as part of a wider consulting project.
Providers can use this to:
- Explore CDC design options and measure impact
- Regularly benchmark your retirement proposition against common alternatives
- Stress test benefit design in different market conditions
Accrual vs increases | Pension vs protection | Simplicity vs tailored | Stepping up and small pots | High earners | AVCs | Transfers in
Beliefs | Strategy | Asset allocation | Manager selection | Monitoring
Setting and achieving member expectations | Member cross-subsidies | Discount rate approach | How structure impacts risks shared
CDC: The Complete Picture
As the UK enters the next phase of CDC regulation, our latest publication explores how these changes could reshape retirement outcomes across the industry.
Read moreWhy Hymans?
Clients choose us because we combine policy insight with practical delivery. We have experience working with multiple clients at various stages of feasibility, design and implementation of multi-employer whole-of-life schemes and Retirement CDC schemes. We bring:
Deep experience across DC, risk sharing and at retirement solutions
Robust asset and liability modelling capability
Practical experience of scheme design and regulatory engagement
Clear, member focused communication
A strong focus on delivering better retirement outcomes
Market-leading longevity insight from Club Vita™
Why now?
It’s a very exciting time for CDC. Single employer CDC schemes are possible and the Royal Mail scheme is live and established. Whole of life CDC schemes will go live in 2027. Retirement-only schemes are not far behind.
CDC has the potential to deliver retirement incomes around 30-50% higher than in standard DC (depending on assumptions). It provides members with a lifetime income, supports clearer decision-making, and is trustee-led. This comes with trade-offs, including reduced flexibility, limited legacy benefits, and potential for income volatility, but CDC can play a meaningful role in improving retirement outcomes.
Related insights
Blog
What is a multi-employer CDC scheme and what opportunities does it offer?
Collective Defined Contribution pensions are gaining momentum in the UK. Learn how single and multi-employer CDC schemes could benefit employers and staff.
Blog
CDC and the future of defined contribution
Our reflections on DC challenges, member outcomes and why collective defined contribution (CDC) is gaining momentum across the pensions industry.
Publication
Mythbusting CDC: what employers need to know
In this publication, we explore common misconceptions employers have about CDC, including concerns about setup burden, accounting treatment, inflexibility, comparisons to With‑Profit funds, overseas examples, and fears of the impact of future legislative change.
Webinar
Getting CDC ready – what’s next for schemes?
Join our 6 November webinar to explore CDC schemes, plan design and legal steps for employers ahead of a potential 2027 launch.
Explore trending insights topics
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Pension Policy Innovation
See our latest thinking on government policy regulation and the future of pensions.
Learn more