Collective defined contribution (CDC) pension schemes need an investment approach designed around member outcomes over time, rather than maximising returns, LCP has argued.

As part of its CDC investment secret series, LCP stressed that a new ‘investment playbook’ was required, moving beyond traditional portfolio metrics to focus on members’ actual experience.

This shift away from maximising returns called for more innovative approaches to portfolio construction, the consultancy noted, combining long-term growth with resilience to inflation, market stress, and evolving economic regimes.

CDC pension outcomes are not fixed in advance, unlike defined benefit (DB) pensions, and not solely determined by individual investment…