A return to collective action might sound like a rallying cry for trade union militancy, but it could be the way forward for the UK’s pension system as it looks to lower costs and reduce liabilities.

In the UK, private sector employees almost invariably join defined contribution plans that revolve around the individual. Members make their own investment decisions, or go into a default fund, and build up a pension fund in their own name. This fund is then used for annuity purchase or income drawdown on retirement on an individual basis.