Employee Rewards and Benefits News
UK faces pensions "dark age"
The UK state pension is worth only 31 per cent of the nation's average earnings - less than half of the one found in Italy, according to a new survey.
Research from AXA discovered that 64 per cent of UK residents are going to rely on their state pension in retirement as occupational pension schemes become defunct or untenable, though this is a bad move, it has been asserted.
Steve Folkard, the head of savings and pensions policy at AXA, explained that there must be a concerted and co-ordinated effort if the country's workers are to be provided for, otherwise there will be a pensions "dark age".
"The erosion of the once sound company pensions infrastructure in the UK, which supported the retirement needs of the working population over much of the 20th century presents a future government with a massive challenge."
He added that pensioner poverty will grow dramatically over the next few years, while current reform procedures will likely take years to implement fully.
Pension schemes are currently under threat in one way or another at a number of major firms in the UK, including Fujitsu and Royal Mail.
Posted by Elizabeth Mewes
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