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NAPF: Pensions good for firms and workers alike
11 March 2008 12:00
Employees and employers benefit from occupational pensions but increased liabilities could hurt them both, the National Association of Pension Funds (NAPF) has claimed.
Official data indicates that the number of occupational schemes available fell by 60 per cent between 2000 and 2006 to 37,540, while active membership of these pensions declined by two per cent between 2004 and 2006 to 9.6 million.
Yet an NAPF spokesperson has insisted that these pensions provide a core part of the employment package for many companies, helping them to attract and retain staff, as well as to maintain their corporate social responsibility role.
Employees, he added, benefit by gaining a source of income when they have retired, as well as basically receiving 'free money' through tax breaks and employer contributions and he therefore urged people to start saving for retirement as early as possible.
However, while the NAPF spokesperson noted that it is companies who will be more concerned by greater liabilities on these pensions, he warned that it combination with higher regulatory costs, this could affect the nature of the schemes they offer their staff.
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