Flexibility in CDC pensions may improve retirement outcomes

Collective defined contribution (CDC) pensions are gaining real momentum in the UK. They offer a compelling way to improve retirement outcomes by providing members with a more predictable income for life. But as the market evolves, one challenge is becoming clear: flexibility. In our view, increasing flexibility in retirement-CDC (R-CDC) is key to unlocking its full potential for UK pension savers. This article focuses on R-CDC in comparing decumulation options but many of the same points apply to whole of life CDC.

Pricing and Reserving - Two Sides of the Same Coin?

Reserving and Pricing should be like yin and yang, one cannot exist without the other (at least not in an actively trading, going-concern) and although at first glance there appears to be a clear division between the two, threads of each run through the other. A huge amount of time and energy in pricing teams goes into getting the shape of prices right, seeking evermore data items and increasing the number and complexity of statistical models used to interrogate this growing mass of data.

The risk of delaying GMP equalisation

Smaller pension schemes delaying GMP equalisation may face rising costs, transaction delays and growing scrutiny as industry capacity pressures intensify. Guaranteed Minimum Pension equalisation has been on the pensions industry agenda for years, yet for many small and medium-sized schemes it remains stubbornly stuck on the ‘to-do’ list. Not because trustees do not understand its importance, or because sponsors are unwilling to engage.

Specialty Insurance’s Tipping Point

 

Lifestyle Actuary

Dalriada Trustees Limited (Dalriada), one of the largest providers of professional trustee services to pensions schemes in the UK, has today announced the appointment of Sarah Brough as a professional trustee.

Lights Camera Actuary

For the next few months Zoe Bolton will be talking to the senior actuaries in these firms, getting a brief insight into their career paths and visions for the future. This month Zoe interviews Shil Patel the UK Managing Director at Dynamo Analytics

Travelling Actuary

This month's Travelling Actuary takes us to the iconic Boston to experience New England at it’s very best.

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