Future generations 'will require more retirement planning'
30/06/2009
Topic: Investments, Market conditions, Pensions, Thinking ahead about retirement
People hoping to enjoy comfortable retirement lives will be required to save more money to do so due to changes being made to the defined benefit (DB) pensions system, figures suggest.
Research by the business group PricewaterhouseCoopers (PwC) shows that 96% of employers believe DB funds are unsustainable in the long term.
Meanwhile, the firm's survey reveals that 88% of private sector companies feel public bodies have an advantage over them as they can offer more attractive DB pension schemes.
March Hommel, Partner and UK Pensions Leader at PwC, said the study finds fewer than one in 20 employers believe their DB schemes will be open to new members five years from now.
He commented: "The collapse of future service defined benefit provision is occurring against a backdrop of super-protection for benefits already earned.
"Future generations will have to do far more for themselves relative to those people who have been lucky enough to belong to a fast-disappearing, defined benefit scheme."
Large companies such as Barclays have recently proposed changes to their DB pension schemes.
Research by the business group PricewaterhouseCoopers (PwC) shows that 96% of employers believe DB funds are unsustainable in the long term.
Meanwhile, the firm's survey reveals that 88% of private sector companies feel public bodies have an advantage over them as they can offer more attractive DB pension schemes.
March Hommel, Partner and UK Pensions Leader at PwC, said the study finds fewer than one in 20 employers believe their DB schemes will be open to new members five years from now.
He commented: "The collapse of future service defined benefit provision is occurring against a backdrop of super-protection for benefits already earned.
"Future generations will have to do far more for themselves relative to those people who have been lucky enough to belong to a fast-disappearing, defined benefit scheme."
Large companies such as Barclays have recently proposed changes to their DB pension schemes.
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