Nearly half (41 per cent) of all defined contribution (DC) schemes said they were 'very likely' to introduce a collective defined contribution (CDC) pension scheme or a risk-sharing alternative, according to research conducted by Hymans Robertson.

The firm's analysis revealed that nearly a third (29 per cent) said that 'protection against members exhausting their pension pot in retirement' was an appealing feature of CDC, while a quarter (25 per cent) said the attractiveness comes from CDC schemes providing higher pensions for members from the same contribution amount.

Twenty-three per cent of respondents said another significant advantage of the CDC was the reduced burden of decision-making for members at and throughout retirement.

Commenting on the industry's responses to DC risk-sharing schemes, Hymans Robertson's head of DC markets, Paul Waters, said the research showed "surprising results."

"Our research came back with surprising results in the degree of positivity towards CDC from employers. If borne out in practice this would be a massive shift in UK retirement provision, and we anticipate the growth of CDC to be more measured.

"Nonetheless it illuminates the rising popularity of DC risk sharing in the industry, with attention growing after the Royal Mail unveiled the UK's first CDC scheme in October and the multi-employer CDC draft regulations were published. CDC, or risk sharing alternatives, allow companies to offer pensions that give members the potential of higher retirement incomes, helping address the UK's adequacy challenge and providing members with more security in retirement.

However, the research highlighted that some concerns remained over CDC schemes.

Legislative changes that would increase employer risk and member dissatisfaction with the pension amount received at retirement were the chief concerns of the companies polled (30 per cent).

"As well as underlining how likeable the 'new kid on the block' is, this research also demonstrates the work still to be done in DC risk-sharing options," said Waters.

"CDC will not be right for all funds, and while the enthusiasm is evident, we also need other DC risk sharing designs to meet the needs of different schemes and members.

"Despite this it's evident that DC risk sharing seems to be one of the most popular and practical answers to DC inadequacy. As likeable as the fresh face of CDC is, however, we must recognise there is a lot of work to be done before individuals' financial wellbeing in retirement can be tackled by CDC on a wholesale basis."

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