Over half of employers and trustees want CDC progress

The poll of 400 participants, conducted online in June, found the majority wanted the scheme type to be expanded to a multi-employer model, perhaps being run by master trusts.

While CDC legislation has been introduced, it is currently only enabling the risk-sharing pension provision for single employers, such as Royal Mail, which is expected to be the first to launch, having opened a consultation in September.

Aon partner and head of CDC Chintan Gandhi said that “appetite for CDC has bever been stronger and continues to grow”.

He continued: “While understanding of CDC has developed over the past few years, it’s really encouraging to see how fast real acceptance of the concept is growing.

“This reflects an increasing awareness of its value in providing an income for life in retirement, on a fixed cost basis, and as a means of saving that doesn’t involve having to make complex financial and investment decisions.”

The government has previously said multi-employer schemes will be made available, with pensions and financial inclusion minister Guy Opperman in June agreeing that the job was “half done”.

At the time, he said: “I have no doubt collective provision can benefit million of pension scheme members when its full potential is realised. Once this first step is done, we will turn our attention to the growing demand for these other types of provision.”

Aon’s survey found 36% saw benefit in setting up a single-employer CDC scheme, while another 26% would opt for a multi-employer arrangement, and a further 25% saw the benefit of CDC as a decumulation option.

Gandhi continued: “This level of interest and understanding of CDC is a testament to the incredible work done by the pensions industry to drive what is the biggest innovation to UK pensions in a generation – and Aon is proud to have been at the forefront of those efforts.

“There is clearly more work to be done, but we can be certain that there is real demand and momentum for the next phases. We remain excited by the positive impact CDC looks set to have on millions of pension savers in the UK.”