Defined contribution pensions 'not providing enough'
For many thousands of people around the UK their defined contribution pension scheme will not provide enough money for a comfortable retirement, according to a recent study.
Research carried out by the human resource firm Mercer found that for the majority of defined contribution schemes, the average amounts being added will not leave members with enough to live on in later life.
Analysts at Mercer suggest that employers ought to be doing more to keep their staff informed about the kind of pension options available to them and how much their contribution level will leave them with in retirement.
Head of defined contribution pension services for Mercer in the UK Tony Pugh said: "Encouraging employees to do more for themselves is essential and, clearly, good communication and education are vital.
"Techniques such as automatic scheme entry requiring member contributions and encouraging members to divert part of their future salary increases into the plan can have a significant impact on adequacy."
A report from Scottish Widows recently claimed that when it comes to pension provision Britons aged over 55 can increasingly be divided into "haves and have nots".
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