Comment on today's Collective Defined Contribution report
Commenting on today's Collective Defined Contribution report from the CPS, an RSA spokesman said:
"The RSA is a strong supporter of allowing collective (CDC) pensions in the UK, and have been working on that topic for eight years. We were therefore very supportive of the DWP Select Committee’s report encouraging the government to allow the establishment of Collective Pensions in Britain, and support for the initiative by the Royal Mail to do precisely that. We all recognise that CDC fills a significant gap in pension provision in the UK; that is how to save, at reasonable cost, for a predictable income from the time you retire until the time you die.
"We note the CPS has recently republished Michael Johnson’s letter to the Select Committee which seems to oppose Collective Pensions in general and Royal Mail’s structure in particular. One principle objection is that it goes against “ pension freedoms”. Like the Select Committee we think this is wrong. Indeed the Royal Mail plan is explicit in offering choice.
"Far from restricting choice, CDC adds to it by allowing people to save for a predictable retirement income."