Fewer investing for future

Pension schemes are attracting fewer new employee members and smaller investments from their bosses, according to a new survey.

11:36 26 May 2004

Pension schemes are attracting fewer new employee members and smaller investments from their bosses, according to a new survey.

The survey was conducted by Origen, an independent financial adviser owned by Aegon UK.

The report claims that, while almost half Britain's companies reported a take up rate for pension funds of 80 per cent of more last year, this year only 32 per cent of firms could claim such a rate.

Furthermore, according to the report, around half defined benefit schemes which have been established in Britain are now closed to new members.

Mark Stopard, pensions specialist at Origen, claims that: "Poor employee take-up of existing pensions is as worrying as companies closing pensions."

According to the Times, Mr Stopard continued: "With the continuing decline of defined benefit schemes, future employees will need to either save more, or take increased risk in their investments, or reduce their expectations for retirement income, or continue working for longer."