Pension News Stakeholders Fail To Make The Grade 2998149
Stakeholders fail to make the grade
20 May 2004
The research shows that less than three in a hundred workers have taken up stakeholder pensions, and that they are saving less than half they need to secure a good pension when they retire.
Experts say that people need to save 15 per cent of their salary throughout their working life if they are to retire with a reasonable pension at a reasonable age.
This means that an employee on the average wage of £21,398 a year in Wales needs to put by £3,210 a year or £267 a month. Yet the average contribution to a stakeholder pension from both employee and employer in employer sponsored stakeholder pensions is just over £1,000 (£1,081) – a shortfall in Wales of £3,210 a year or £177 a month.
Wales TUC general secretary Felicity Williams said: “There is nothing wrong with stakeholder pensions in theory.
“They are a good investment for anyone who does not have a quality occupational pension. But these figures show that they are failing to take up the slack caused by employer retreat from good pensions.”