Property News · August 13, 2016

The scandalous changes to company pension schemes


Every time an employer closes a final salary scheme and moves workers to a ‘defined contribution’ one, it shifts all the risk onto themA man in his 40s receives a pension projection that tells him his retirement income is going to collapse from the £38,000 he was expecting to £18,000. His company is having to find a sum equal to 45% of his salary to keep the pension scheme going, a crucifying amount for any employer, and the costs will keep on spiralling. It says it has no choice but to slash the scheme to ribbons.This is the sort of dilemma facing the workers, and bosses, of Royal Mail and the Post Office. Strike action is looming – and quite rightly too, because the cuts are equivalent to someone losing £200,000 or even £300,000 over the course of their retirement. Continue reading…

Source : theguardian.com
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