CDC, or Collective Defined Contribution, is a new way for employers to help staff save for their retirement. Introduced in the Pension Schemes Act 2021, CDC is an alternative pension scheme design that provides a fixed contribution for employers and a reliable income for life for members.
CDC is designed to provide its members with an income for life, as opposed to a savings account. Members can see the pension at retirement they are building up, and they cannot outlive their savings.