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15 Dec, 2011 - 23% of UK final salary schemes closed this year
23% of UK final salary schemes closed this year
The National Association of Pension Funds has just revealed that almost a quarter of final salary company pension schemes in the UK have been closed off to all of their staff.
23% of the all finaly salary company pension schemes in the UK have been denied to new staff as well as to future contributions for those already signed up, as employers are combating the costs of increased longevity and rising company costs. In addition, 11% of schemes plan to make the existing defined-benefit pension structure less generous, for instance by moving from a final salary to a career average structure.
“The private sector is seeing a seismic shift in its pensions and more change is certain. Final-salary deals are coming off the table and are either being watered-down or replaced altogether”, NAPF Chief Executive Joanne Segars said.
“While it is difficult to be exact, we estimate that up to a quarter of a million have been moved out of their final salary pension over the past three years”, she added.
This therefore continues to suggest that savers should plan their own retirement finances privately, as companies and Governments no longer afford to provide a sustainable pension fund. Speak to a deVere Pension Expert today to learn more about planning for the retirement that you deserve.
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