Employee pension schemes 'are closing'
A growing number of firms are withdrawing employee pension schemes, according to new research.
Figures from the Association of Consulting Actuaries (ACA) reveal that four in every five defined benefit pension schemes are no longer open to new employees.
This sum equates to 81 per cent and is an increase from the 68 per cent recorded in 2005, the ACA states.
As a result, an increased number of Britons - particularly those new to the world of work - are at risk of financial problems during retirement, explained ACA chairman Ian Farr.
"The big downside of the scheme closures . . . is that we are facing the very real prospect of growing 'under pensioning' in respect of millions, particularly the young and middle aged," he said.
Mr Farr called on the government to "act decisively" in order to address this problem and encourage more people to take up personal accounts for pension savings.
Recent research from Birmingham Midshires suggested that those who invest in private pension schemes are more likely to be comfortable in later life.
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