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Pensions could level down by 2012
8 October 2008 14:51
A substantial number of pension schemes could level down by 2012, new research has shown.
An annual survey by NAPF of over 500 pension schemes found that nearly 20 per cent said that they would level down by lower contributions or switching new employees to personal accounts from 2012.
The research also revealed that employer pay-in rates in direct contribution schemes remained steady at an average of seven per cent, while employee contributions had increased by 0.3 per cent to 4.3 per cent.
Senior pensions policy manager for Standard Life, Andrew Tully, said that levelling down will happen due to the current economic climate, and it was possible that some employers could start to move to reduce contributions for everyone.
He added that the government needs to make it as simple as possible for employers to keep good existing schemes without changing.
Statistics published last week showed that 90 per cent of employees do not believe that the state pension is enough to live off.
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