04 December 2025
Sacker & Partners LLP (Sackers), the UK’s leading specialist law firm for pensions and retirement savings, today have provided their response to the government’s latest CDC consultation.
Helen Ball, Partner at Sackers commented:“ The introduction of retirement CDC forms a pivotal part of the Government’s drive to improve retirement outcomes for members of DC schemes. It sits alongside other major reforms such as the expansion of CDC to unconnected multi-employer schemes, the guided retirement measures in the Pension Schemes Bill, and the FCA’s framework for targeted support.”
“We welcome the Government’s proposals, although there are a lot of moving parts that could affect their chances of success. We do have some reservations about the proposed sequencing and whether this might hamper their effectiveness. If guided retirement is introduced before retirement CDC schemes become available, the Government might miss its best opportunity here – that’s because it may then be too late for CDC schemes to take off if alternative default retirement solutions have already been chosen. There could also be challenges partnering with retirement CDC schemes to create a default retirement solution if trustees can’t show that it will offer members better outcomes compared to any other solution they could design and implement themselves. This could give rise to difficulties where a retirement CDC scheme has little to no proven track record.”
“We would encourage the Government to look again at its timetable to allow opportunity for retirement CDC schemes to be established before trustees are required to choose and offer a default retirement solution. This will ensure that members can benefit from the full suite of options.”
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