I can’t disagree with any of this Jonathan. I guess the proof of the pudding will be in the eating and when trustees see CDC working, they will adopt.
The issue is how CDC will get seeded without employer or trustee support and the answer is that financial institutions are waking up to their being able to pay more income under CDC than under an annuity and equivalent income as expected from drawdown with greater certainty. A lot of this is simply down to scale, but it’s also down to not needing to reserve and not being so restricted on the investment side relative to guaranteed benefits.
My guess is that CDC will take a couple of years to become mainstream but when it does- it is the natural place to invest accumulated DC savings.