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Final salary pension schemes to struggle

18 November 2004
Three out of four companies will struggle to meet their existing requirements for final salary pension schemes.

That is according to the National Association of Pension Funds, who found in a new survey that the contributions of companies to these schemes are rocketing.

"The picture which emerges from today's survey is one of firms struggling to maintain a commitment to providing decent pensions for their staff, while policy makers - far from supporting their efforts - impose further burdens," said NAPF chief executive Christine Farnish.

"Even the most committed firms are now struggling to manage costs," she added.

A raft of companies are replacing their final salary schemes - which guarantee retirement income based on length of employment - with money purchase schemes.

These purchase schemes simply guarantee how much firms pay into an employee's pension, rather than how much the pension will be worth in retirement.

To find out more about how to plan for your retirement, click here.
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