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| Version 1 | Version 2 |
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| Pension savings 'deteriorating' | Pension savings 'deteriorating' |
| (about 1 hour later) | |
| Nine out of 10 final salary pension schemes are now closed to new entrants as employers continue to move away from the higher-cost schemes, a report says. | |
| And 18% of the schemes are closed to future accruals from members, says the Association of Consulting Actuaries. | |
| The ACA, which quizzed 309 firms, said the situation was "deteriorating", with 91% of such schemes now in deficit. | The ACA, which quizzed 309 firms, said the situation was "deteriorating", with 91% of such schemes now in deficit. |
| The government says it is trying to cut regulatory burdens on company pensions and preparing "radical" new options. | |
| ACA chairman Keith Barton said these were "worrying times" for those nearing retirement and called for a "radical change of approach". | ACA chairman Keith Barton said these were "worrying times" for those nearing retirement and called for a "radical change of approach". |
| "Just 6% of employers responding to the survey say they feel the government's stated policy of supporting quality workplace pensions is working, down from 38% two years ago," he said. | "Just 6% of employers responding to the survey say they feel the government's stated policy of supporting quality workplace pensions is working, down from 38% two years ago," he said. |
| 'Radical' | 'Radical' |
| The Department for Work and Pensions said its pension reforms were "radical" and that when automatic enrolments into workplace pensions began in 2012, 11 million workers would have the chance to save with a new minimum employer contribution. | The Department for Work and Pensions said its pension reforms were "radical" and that when automatic enrolments into workplace pensions began in 2012, 11 million workers would have the chance to save with a new minimum employer contribution. |
| The UK pensions landscape is undergoing huge change Maggie Craig, ABI Final-salary pensions disappear | The UK pensions landscape is undergoing huge change Maggie Craig, ABI Final-salary pensions disappear |
| "We are also supporting good quality pension provision through our deregulatory review," a spokesman added. | "We are also supporting good quality pension provision through our deregulatory review," a spokesman added. |
| "We have eased the burden of revaluation and indexation which has the potential to save employers about £250m per year on average in the longer term. | "We have eased the burden of revaluation and indexation which has the potential to save employers about £250m per year on average in the longer term. |
| "We recognise that the current economic climate presents challenges to employers sponsoring defined benefit schemes - that is why the Pension Regulator is working openly with trustees and employers to improve awareness and understanding of the scheme specific approach to protecting members and the PPF, and the flexibility available within the scheme funding framework." | "We recognise that the current economic climate presents challenges to employers sponsoring defined benefit schemes - that is why the Pension Regulator is working openly with trustees and employers to improve awareness and understanding of the scheme specific approach to protecting members and the PPF, and the flexibility available within the scheme funding framework." |
| 'Maximum value' | 'Maximum value' |
| The survey coincided with a publication from the Association of British Insurers (ABI), in which it outlines proposals for people to maximise their defined contribution pension pots. | The survey coincided with a publication from the Association of British Insurers (ABI), in which it outlines proposals for people to maximise their defined contribution pension pots. |
| PENSION SCHEMES EXPLAINED Occupational scheme - one organised by an employerActive member - a worker making contributionsFinal-salary scheme - guaranteed pension based on earnings at end of career and length of serviceDefined contribution scheme - investment fund, determined by contributions and investment returns, used to buy an annual pension. Also called a money purchase scheme | PENSION SCHEMES EXPLAINED Occupational scheme - one organised by an employerActive member - a worker making contributionsFinal-salary scheme - guaranteed pension based on earnings at end of career and length of serviceDefined contribution scheme - investment fund, determined by contributions and investment returns, used to buy an annual pension. Also called a money purchase scheme |
| These are schemes which allows people to use their savings to buy an annual pension income, known as an annuity. | These are schemes which allows people to use their savings to buy an annual pension income, known as an annuity. |
| The ABI said that the age at which people with a defined contribution pension should buy their annuity should be extended from the current upper limit of 75 to 80. | The ABI said that the age at which people with a defined contribution pension should buy their annuity should be extended from the current upper limit of 75 to 80. |
| Married couples and partners should also consider whether to merge their pension pots, the group said. | Married couples and partners should also consider whether to merge their pension pots, the group said. |
| "The UK pensions landscape is undergoing huge change, with the numbers drawing benefits from defined contribution pensions savings in 2010 set to exceed 500,000," said Maggie Craig, acting director general of the ABI. | "The UK pensions landscape is undergoing huge change, with the numbers drawing benefits from defined contribution pensions savings in 2010 set to exceed 500,000," said Maggie Craig, acting director general of the ABI. |
| "The good news is that these people can expect to live longer. However, this improvement brings new pressures, which means the current rules and regulations are not fit for purpose. | "The good news is that these people can expect to live longer. However, this improvement brings new pressures, which means the current rules and regulations are not fit for purpose. |
| "The savings industry is keen to rise to the challenge and meet the needs of Britain's savers." | "The savings industry is keen to rise to the challenge and meet the needs of Britain's savers." |