'Bold action required' to help UK pension schemes

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'Bold action required' to help UK pension schemes

Fri 23rd Jan 2009

More than half of salary-rated pension schemes on offer to new members could close due to the current financial crisis, research has revealed.

According to a survey by the National Association of Pensions Funds (NAPF), 1,000 private sector-defined benefit plans schemes are likely to be halted.

This has led to a considerable fall in employee confidence in pensions, the firm reported.

NAPF chief executive Joanne Segars called on the government to take steps to ease pressure on scheme sponsors and help build member confidence.

She said that the situation should be subject to the same bold action taken in response to the economic crisis in other key areas.

"This is a now or never moment if we want to see defined benefit schemes remain a key part of the UK's pension landscape," Ms Segars declared.

The call comes after a study by Lincoln Financial Group this week revealed that 40 per cent of Brits are not saving enough to last them in later life.

Lincoln anticipates that 40 per cent of the UK's population will run out of money by the age of 85.

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