With all of the talk about pensions and how people's retirement funds are likely to be smaller than they expect, people in employer sponsored pension schemes (or company pension schemes) seem to have been glossed over.
Mercer, an actuarial consultancy firm said that after their latest survey of employer money purchase (or defined contribution) pension schemes, the majority will not provide adequate pensions in retirement.
According to the firm, the average employer contributes around six percent of an employee's salary, with the employee paying around three and a half percent. They think that this puts people short of an adequate retirement by half.
Employer contributions to pension schemes are a great benefit to have as the numbers of them is falling. You should always consider joining a pension scheme at work, especially if your employer is paying into it for you.
Search the archive for pensions stories. Learn more about pensions in the Pensions Adviser.com.
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