target pensions

We are sorry to announce the recent death of collective defined contribution pensions after a short illness following their birth in the Pension Scheme Act 2015.

Cases of infant mortality are thankfully rare in Britain these days and for a major initiative to be consigned to the Regulatory dustbin after just 6 months , suggests a degree of negligence on behalf of the parents.

Sadly the parents are now divorced and have relocated and were unable to comment. We have heard from the stepmother who in a short statement has announced CDC’s demise as follows

“The time is not right to ask the pensions industry to absorb the new swathe of regulation that would be needed to make such further reforms work effectively. The market needs time and space to adjust to the other reforms underway and these areas will be revisited once there has been an opportunity for that to happen”.

CDC is survived by a number of siblings ,

the defined benefit scheme ( in intensive care)

the workplace pension (in rude health but in need of some discipline)

the annuity – ( in permanent detention)

and the income drawdown – (under advice).

Concern has been raised by those concerned about patient care, that in the absence of a default means to decumulate savings, the death of CDC may be considered a deliberate attempt to create “advice dependency” a form of addiction that requires regular visits to a financial advisers for financial reviews.

Where the patient has no access to private financial care, it is feared that this “advice-intensive” approach may lead to many missed appointments from the general public unwilling to pay for advice or devote their time to the management of their retirement income planning.

Speaking from a bunker somewhere in the City, the Pension Plowman commented.

CDC is dead  – long live collective drawdown (with a bit of pooled mortality thrown in).  The Pension Plowman is currently helping the  PLSA  with their enquiries.

John Ralfe will be taking a collection in aid of the bereaved.

[end of obituary]

About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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1 Response to CDC -RIP

  1. Philip Dodd says:

    Metaphor extension at its best, Henry – a highly entertaining piece.

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