Pensions crisis a "ticking time-bomb" - Campbell (BANFFSHIRE and BUCHAN COAST Liberal Democrats)

BANFFSHIRE and BUCHAN COAST Liberal Democrats <info@banffandbuchanlibdems.org.uk>

Pensions crisis a "ticking time-bomb" - Campbell

June 25, 2009 10:39 AM
Originally published by Scottish Liberal Democrats

Commenting on three separate reports released this week which paint a dire picture of Britain's pensions crisis, MP Sir Menzies Campbell said: "More and more people working in the private sector are going to find themselves disappointed by the pension provision being made by their employer, with some companies closing certain schemes to new members of staff. The recession is inevitably going to affect pensions but employers should be dissuaded from taking short-term measures which could alter their employees' pensions in the long-term.

"When the private sector tighten its belt it inevitably puts more pressure on state pensions. The Government must wake up to the fact there is a ticking time-bomb in our pension provision. "

Notes:

A survey of 1000 companies by Pricewaterhouse Coopers found that employers reported final-salary schemes were becoming too expensive. 96% of companies are planning changes to their workplace pension schemes: More than 80% of the companies in the survey had already closed their defined-benefit scheme (which include final-salary and career-average schemes and pay out a fixed amount during retirement, no matter how the investment performs) to new members of staff. More

at:

http://www.ukmediacentre.pwc.com/Content/Detail.asp?releaseID=3291&NewsAreaID=2

The Organisation for Economic Development placed Britain at the bottom of a pensions league table for those who are yet to retire.

The Office of National Statistics revealed that Britain has the least generous arrangement of any OECD country.