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CIDC schemes divide industry

Collective individual defined contribution schemes may be the only viable form of collective pension scheme in the short run, according to David Blake, director at the Pensions Institute, Cass Business School.

Phil Farrell, Partner at Quantum Advisory, queried the ability to set individual contribution rates in a CIDC arrangement….

“How do you calculate a contribution rate that is deemed to be appropriate to the individual, because it’s inextricably linked to the ambition income level for that person. It might not be what they’re after, it might not be what they require, he said”.

Pension freedoms have been a popular way of giving savers control over their retirement planning. The identifiable nature of savings afforded by CIDC goes some way to meet this demand, but has left Farrell unconvinced.

Although individual pots might address some of the concern of people wanting to know where they are putting their money away, “ultimately, all the kind of factors around that which are going to generate… this adequate income, are going to be out of their hands”, Farrell said.


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