'Mismanaged' pensions to increase debt problems?
'Mismanaged' pensions to increase debt problems?
- Thursday, 5 November 2009UK pension schemes have been "uniquely mismanaged" over the past decade or so, it has been claimed.
According to Hargreaves Lansdown, the current state of the country's pension system is down to poor handling of the sector in the mid-nineties.
The state of British pensions could see an increase in the number of people seeking
debt advice in the future.
Tom McPhail, head of pensions research at Hargreaves Lansdown, said that past mistakes have led to the present woes.
He commented: "A series of poor political decisions have resulted in a pension system generally which is not fit for purpose and an environment today where the continued demise of the defined benefit schemes is inevitable."
Mr McPhail made his comments after the Organisation for Economic Co-operation and Development revealed that the UK was one of only a few developed western countries to experience an increase in its pensions deficit.
The UK pensions deficit increased from nine per cent in December of last year to 13 per cent in June 2009

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