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UK Introduces CDC Pensions to Boost Retirement Incomes by 60%

10/23/2025

Summary

Story summary

The UK government will introduce regulations to expand Collective Defined Contribution (CDC) pension schemes in Parliament on October 23, 2025, aiming to provide workers with regular lifetime pension payments.
Research indicates CDC schemes could increase retirement incomes by up to 60%.
Pensions Minister Torsten Bell emphasized the importance of shared risks and simplified choices for retirees.
A consultation on retirement-only CDC schemes will allow individuals to transfer defined-contribution pots into CDC arrangements at retirement.

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Story summary

The UK government will introduce regulations to expand Collective Defined Contribution (CDC) pension schemes in Parliament on October 23, 2025, aiming to provide workers with regular lifetime pension payments.
Research indicates CDC schemes could increase retirement incomes by up to 60%.
Pensions Minister Torsten Bell emphasized the importance of shared risks and simplified choices for retirees.
A consultation on retirement-only CDC schemes will allow individuals to transfer defined-contribution pots into CDC arrangements at retirement.