Retirement: New survey confirms many people will work to age 70

A new survey has confirmed what many people have previously feared, that they will have to work longer before they retire. The research, conducted by the Association of Consulting Actuaries (ACA), found that over 50% of small and medium sized companies expect that by 2028, 25% of their workers to retire at age 70 or over, with working past the age of 68 becoming the norm. Dramatic changes are also expected sooner, with two thirds of companies expecting people to retire at 67, or later, by the end of this decade....

Gap widening between private and public sector pensions

The Association of Consulting Actuaries (ACA), the representative body for UK consulting actuaries, have argued the gap between private and public pensions is widening. ACA research shows nine in 10 private sector defined benefit (DB) schemes, often known as final salary pensions, have been shut to new entrants and four out of 10 closed to future accrual. The survey which involved 468 employers running more than 560 pension schemes highlighted the decline of defined benefit pension schemes. Automatic enrolment The survey also considered the effects of the government’s plans for auto enrolment. The private sector contains 26 million employees and the ACA said a ...

New report criticises introduction of compulsory workplace pensions

A new report from the Association of Consulting Actuaries (ACA) has criticised the government’s plans to introduce compulsory work place pensions saying it will lead to pension savers being significantly worse off in retirement as the reforms will force employers to cut their contributions to existing workplace schemes. Compulsory contributions Around four in 10 private companies offer a pension to their staff however auto enrolment will mean that from next year employees will have to be enrolled into a workplace pension and make contributions, the employer will also have to make payments on behalf of their employees. Although auto enrolment will start in ...