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 report brings together a range of existing and new material relevant to the aims and objectives of DA.
It explores what demand there may be for different types of risk sharing pensions and for different types of guarantees in pension schemes. It does not include detailed explanations of how DA pensions may work in practice.
We have also commissioned independent research about consumers’ views of 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.