CBI: UK pensions crisis on the horizon

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CBI: UK pensions crisis on the horizon

Wed 17th Jun 2009

The Confederation of British Industry (CBI) has said that the UK is on course to hit a huge pensions crisis due to the recession forcing many firms to cut their schemes and the lack of action on the government's part to tackle this.

According to the CBI, the increasing closure of company pension schemes is widening the gap between state and private sector pension plans, reports the Daily Mail.

Furthermore, the confederation's latest research indicates that the cost of providing high-quality schemes is so high that firms are refraining from taking up government contracts.

Deputy director general of the CBI John Cridland told the newspaper that "the forces of inertia are preventing radical reform by the government" and that officials are "sleepwalking their way into a crisis".

According to research conducted by Unbiased.co.uk, British workers using company pension accounts are missing out on £720 million in additional funds as they neglect to research more effective ways to save when it comes to taxation.

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