You are here

Optimising Future Pension Plans: Phase II

Phase two of this ARC commissioned research programme led by Professor Catherine Donnelly (Heriot-Watt University) seeks to develop innovative new pension product designs that keep the customers' needs at the forefront and provide a stable income in retirement, whilst minimising costs for the customer.

The products currently available to provide a stable, lifetime retirement income are not meeting the needs of many people. Working closely with industry, this two-year programme aims to address many of the questions around longevity risk-sharing in the retirement space. It will create and share practicable worked examples of how to structure these products.  For example, how can the benefits be calculated, for how long can they provide a stable income and what guarantees are appropriate.

The programme will also study collective defined contribution (CDC) pension plans.  The enactment of the Pension Schemes Act 2021 is the first step in allowing CDC plans like the proposed Royal Mail CDC plan in the UK.  The programme will quantify the benefits of collective risk-sharing in such plans under a range of scenarios.

Visit phase 1 of the programme

This exciting research programme will play a key role in delivering better retirement outcomes for members.

The options currently available to access retirement savings are limited and require extreme choices to be made. Many employers and providers want to offer genuine alternatives, but there is some uncertainty about these new arrangements and how they will deliver on their objectives. The independence and rigour of this research will provide answers to the big questions, and help to move the policy debate forwards.

Steve Hitchiner

Steering Group Chair

Programme objectives

  • Analyse collective risk-sharing in pooled annuity funds and collective defined contribution (CDC) plans and determine where the risk is shared among the customers or plan membership.
  • Determine how to structure the benefits, based on given criteria.
  • Determine the trade-off between these risks and the stability of pension income, in both pooled annuity funds and CDC plans.
  • Study the addition of guarantees in pooled annuity funds and CDC plans, to enable them to better meet their objectives.

Follow this project on social media with the hashtag #ARCfuturepensions


Filter or search events

Start date
E.g., 22/01/2022
End date
E.g., 22/01/2022

Events calendar

  • Spaces available

    Over recent months there has been a sharp rise in M&A activity involving British businesses, with interest from overseas, domestic buyers and Private Equity investors.  

  • Spaces available

    Frank Redington is recognised as one of the most influential actuaries of all time. In this talk, Craig will review some of Redington's most important ideas. He will identify the consistent actuarial principles that form a common thread across the contributions Redington made to a broad range of actuarial fields, and will highlight the ongoing relevance of Redington's thinking to 21st century actuarial practice.

  • Spaces available

    The IFoA Mental Health working party look back over their week of blogs and podcasts considering all aspects of the relationship between mental health and life insurance. The expert panel spans adviser, underwriter and actuarial experience and they  explore triggers for purchasing insurance relating to mental health, the various routes to insurance and how these may be more suited to different people depending on their conditions and preferences, the products and processes involved in purchasing these as well as what claims and support are available to policyholders and how to access them.

  • Spaces available

    Part of the 'Finance in the Public Interest 2022' webinar series. If it was ever okay to consider your business in isolation from its surroundings, today it most definitely is not. Thinking about business within its surrounding system is now a necessity. The question we seek to discuss is: How should we prescribe the boundaries in which we consider problems to enable us to create better products and more resilient companies and systems?

  • Spaces available

    What will happen to DC pension savers who see life annuities as poor VFM but still want an income for life?  Pooled annuity funds could offer them a decent lifetime income while reducing significantly the complex choices and risk inherent in income drawdown.  They could be the next generation of CDC pension schemes, slotting into the existing DC framework as a post-retirement option.