'Growing gulf apparent' between private and public sector pensions

There is a growing gulf between the quality of private and public pensions, according to the latest report by the Association of Consulting Actuaries (ACA).

One of the key findings of the new research was that fewer than two million employees are enrolled in private sector defined benefit schemes, nine out of ten of which are now closed to new entrants.

On the other hand, over five million public sector employees enjoy 'open' defined benefit pension schemes.

The ACA findings also suggested that little more than a quarter of private sector employers have budgeted for the cost of auto-enrolment, which is set to begin in October 2012.

Commenting on survey results, ACA chairman Stuart Southall said: "Auto-enrolment, beginning in late 2012, should widen private sector pension coverage, particularly where no pensions are offered at present.

"But the fact that recently the Government had to delay its introduction for smaller employers, because of the deteriorating economic climate, is discouraging.  "

The ACA has now called for the government's promised new year paper on its plans to 'reinvigorate workplace pensions' to take a bold path.

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