Debt advice needs could rise with expected 50% closure of pension schemes
Debt advice needs could rise with expected 50% closure of pension schemes
- Wednesday, 19 August 2009The number of UK retirees seeking
debt advice could rise as a result of a significant rise in the number of companies closing their pension schemes.
Research from pension consultants Watson Wyatt has revealed that 75 per cent of businesses are to disable all final-salary schemes for new recruits, with nine per cent closing them to current employees.
The consultancy believes that these figures are likely to increase and that by 2012 up to one million people could have been forced to join an alternative pension programme.
Rash Bhabra, of Watson Wyatt, said: "When employers are cutting jobs and freezing pay, pension arrangements will inevitably be put under the microscope. At the same time, companies are confronting much bigger deficits."
The confusion over pension security could see a number of people's future plans disrupted and finances strained.
The default retirement age is to be reviewed by the government in 2010.

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