Pensions  

Do CDC schemes hold more benefits than DC?

  • Describe how CDC schemes work
  • Explain the advantages
  • Explain the disadvantages
CPD
Approx.30min

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It can not always be better for everyone, but the CDC’s scheme design has smart features that ameliorate the core potential downsides. 

Adrian Boulding is retirement strategy director at Dunstan Thomas 

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CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Why does a CDC scheme hold riskier assets til close to retirement age?

  2. What is the consequence of sharing the idiosyncratic mortality risk?

  3. A CDC scheme will share the systemic mortality risk intergenerationally, true or false?

  4. Why do CDCs not have to hold large capital reserves against future liabilities?

  5. A CDC scheme might not be best suited to those who cannot tolerate a 10 per cent drop in pension income, true or false?

  6. Who chooses the investments in a CDC scheme?

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  • Describe how CDC schemes work
  • Explain the advantages
  • Explain the disadvantages

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