Auto enrolment sees fast exit of company pension schemes - deVere Group comments in FT
(EMAILWIRE.COM, October 29, 2012 ) Malta -- In such a tough economic environment, constant tax and legislative changes and the fact that people are living longer, final salary schemes are quickly becoming less financially viable for many employers - according to Nigel Green, chief executive of the deVere Group.
The UK Department for Work and Pensions' auto-enrolment plans are increasingly forcing companies to abandon schemes altogether as they provide 'a perfect excuse' to consider closing future accruals as part of a final exit strategy.
In his own words, Green added that "this is of real concern as it could result in firms levelling down their pensions arrangements to the minimum requirements".
Furthermore, the UK government's pot-follows-member scheme that allows workplace pensions to move with employees from job to job could wipe 25% off workers' funds and carries too many threats for the workers, echoed PWC.
Peter McDonald, a partner at PWC, urged the government to reconsider suggestions put forward last year to create an 'aggregator scheme model' - claiming that individuals should start taking full responsibility for their retirement.
Ultimately, Nigel Green encourages individuals to start planning for their retirement as early as possible in order to secure themselves and their family a financially stable future. After all, governments and companies alike are no longer reliable to secure a sustainable income for retirement.
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.