A survey by the Association of Consulting Actuaries has revealed that more than half of final salary pension schemes are now closed to new staff. This supports the argument that there is a real need for more people to save for private provision.
The report calls for a number of measures, including the introduction of a single flat-rate state pension linked to earnings and to include improved tax or financial incentives, to encourage sponsorship by employers of occupational schemes.
Chairman of the ACA, Gordon Pollock, said that there is a widening gap between those who are fortunate to be offered occupational arrangements and the increasing number that are not. The survey found that more than two-fifths of employers were trying to reduce pension spending whilst a great deal more would look to do so in the future.
It also highlighted that stakeholder schemes had failed on pension provision. Less than 1% of employees questioned joined stakeholder, while 46% of stakeholder schemes had no members at all.
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