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| Millions may lose promised pension payout | Millions may lose promised pension payout |
| (about 2 hours later) | |
| Three million savers in final-salary pension schemes only have a 50/50 chance of receiving the payouts they were promised, a study has concluded. | Three million savers in final-salary pension schemes only have a 50/50 chance of receiving the payouts they were promised, a study has concluded. |
| Some employers were under pressure to meet their pension obligations, the Pensions and Lifetime Savings Association (PLSA) said. | Some employers were under pressure to meet their pension obligations, the Pensions and Lifetime Savings Association (PLSA) said. |
| High-profile cases such as the BHS collapse have highlighted concerns over the future of workplace pensions. | High-profile cases such as the BHS collapse have highlighted concerns over the future of workplace pensions. |
| The PLSA said one solution could be the pooling of resources into "superfunds". | The PLSA said one solution could be the pooling of resources into "superfunds". |
| This would allow relatively small companies to pay a fee to transfer final-salary pensions to a larger fund - which would then have bigger investment opportunities. | This would allow relatively small companies to pay a fee to transfer final-salary pensions to a larger fund - which would then have bigger investment opportunities. |
| A standard deal for pension scheme members could see some receive better final payouts as a result, but others could see their expected income deteriorate. | A standard deal for pension scheme members could see some receive better final payouts as a result, but others could see their expected income deteriorate. |
| But pensions consultant John Ralfe described the superfund plan as "short on practical detail". | |
| "The PSLA does not explain how pension obligations would be consolidated. Either each company is still on the hook for its own individual pension liabilities in the new 'superfund' - which does not help anyone - or companies have cross-guarantee all other companies schemes, which no one will do," he said. | |
| The in-depth study by the PLSA considered the outlook for final-salary pensions used by 11 million people in the UK. | The in-depth study by the PLSA considered the outlook for final-salary pensions used by 11 million people in the UK. |
| Employers have pumped in an extra £120bn in special payments to try to plug financial holes in these schemes, but the combined deficit of the UK's 6,000 schemes remains at £400bn. | Employers have pumped in an extra £120bn in special payments to try to plug financial holes in these schemes, but the combined deficit of the UK's 6,000 schemes remains at £400bn. |
| The majority of final-salary schemes had a sustainable model for meeting future payouts, the PLSA said. | The majority of final-salary schemes had a sustainable model for meeting future payouts, the PLSA said. |
| However, three million members of schemes faced a more uncertain financial future, it concluded. | However, three million members of schemes faced a more uncertain financial future, it concluded. |
| Ashok Gupta, who chaired the PLSA review, said there was a "real possibility" of a collapse for more high-profile pension schemes, and so the report's many proposals needed to be considered. | Ashok Gupta, who chaired the PLSA review, said there was a "real possibility" of a collapse for more high-profile pension schemes, and so the report's many proposals needed to be considered. |
| "The industry and government need to grasp this opportunity and tackle serious flaws that threaten the security of people's retirement," he said. | "The industry and government need to grasp this opportunity and tackle serious flaws that threaten the security of people's retirement," he said. |
| Retirement delay | Retirement delay |
| Pension saving has become automatic for most workers, owing to the government's automatic enrolment scheme, but there are still concerns about a lack of saving across all age groups. | Pension saving has become automatic for most workers, owing to the government's automatic enrolment scheme, but there are still concerns about a lack of saving across all age groups. |
| Insurer Aviva estimated that two million older workers had dependent children or parents, and a third expected to delay retirement with others likely to reduce pension saving owing to the financial pressures involved. | Insurer Aviva estimated that two million older workers had dependent children or parents, and a third expected to delay retirement with others likely to reduce pension saving owing to the financial pressures involved. |
| "Many over-50s are shouldering the responsibility of putting their families' financial needs ahead of their own for a prolonged period of time," said Lindsey Rix, of Aviva. | "Many over-50s are shouldering the responsibility of putting their families' financial needs ahead of their own for a prolonged period of time," said Lindsey Rix, of Aviva. |
| Aviva's survey did find that many older workers were staying on in employment owing to job satisfaction rather than financial need. | Aviva's survey did find that many older workers were staying on in employment owing to job satisfaction rather than financial need. |