Defined Ambition (DA) is a new category of risk sharing pensions that we want to introduce alongside existing Defined Benefit (DB) and Defined Contribution (DC) pensions. It is part of our plans to radically transform UK pensions. We want to encourage risk sharing to provide:
- more certainty and stability in pensions for individuals than DC pension schemes
- less variation in costs for employers than DB pension schemes
This research was commissioned to understand views about:
- risk and uncertainty in pension schemes
- reducing cost variations in DB schemes
- increasing certainty in DC schemes
- some examples of the types of certainty that could be feasible in potential DA schemes
Authors: Amy Ohta, Naomi Day and Andrew Thomas of TNS-BMRB.
We have also published a summary of new and existing material about Defined Ambition pensions.
Reshaping workplace pensions for future generations’ consultation
We considered these research findings in our response to the consultation about reshaping workplace pensions for future generations.