CDC as a Decumulation Solution

Our The Power of Pooling report covers how CDC as a decumulation option looks set to transform the pensions industry.

A retiree at 65 can, on average, expect to live to an age of 86. However, they face a 50% chance of their actual lifespan lying somewhere between age 80 and age 93. Regardless of the size of their pension pot at retirement, this means they have a very material challenge to decide how to budget for this uncertainty, as they try to balance the pace at which they their retirement savings against how long they might live.

This report shows what retirement outcomes might look like from a CDC decumulation solution, compared with annuity purchase and, in particular, income drawdown.

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