Employers 'avoiding' final salary pension schemes
Employers in the UK are aiming to avoid providing their respective workforces with final salary pensions, it has been claimed.
The Pensions Advisory Service (TPAS) is convinced that as the workplace pension landscape changes in the UK in years to come, employers will primarily be looking to offer their staff defined contribution options.
In fact, TPAS suggest that in ten years' time there will be very few final salary pension schemes operating in the UK.
Des Hamilton, technical director at TPAS, said: "It quite clear that employers, almost universally, with the exception of the public sector, have made the decision that the future for them as an employer is having money purchase pension arrangements because that passes all the risk to the employees.
"The final salary scheme is one which employers are not prepared to install and are looking for ways to get out of them."
Figures from the Age Concern charity indicate that there will be around 1.2 million more people above the pensionable age in the UK in 2011 than was the case last year.
Related Stories
This news is available in 