Money purchase pension schemes fall short

Money
purchase pension schemes are now worth at least one-third less than final
salary plans, according to new research.

A
study by consultant Union Pension Services of 250 schemes found that money
purchase benefits are significantly lower than final salary pensions.

The
research ranked pensions on the level of benefits provided and found that The
Kingfisher Group was offering the worst scheme.

Bryn
Davies, author of the report, said the ideal scheme should provide two-thirds
of a worker’s final salary.

By Ross Wigham

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