25 April 2008
Workers are failing to understand that their pensions may not
pay for a decent retirement. A report by MPs warned that there is a
'widespread lack of understanding' about pensions among thousands
of workers across the country.
As final salary pensions become ever rarer, growing numbers of
workers are members of money purchase schemes. Many, however, are
unaware that money purchase pensions do not offer the guarantees
that final salary pensions do.
The report from the Public Accounts Committee warns that money
purchase pensions are 'considerably riskier' and may not pay an
appropriate income on retirement.
