Final Salary Pension Cuts
A large pension consultancy firm – Aon recently announced that it plans to cut its contributions to its workers' pensions. Is this is the thin end of the wedge.
If one of the country's leading pension consultancies is acting like this then the signs are workers will be heading for poorer retirements. The writing is clearly on the wall, and it seems inevitable that other employers will follow.
Mike Hardy at Abacus Advice Limited a leading IFA says “The cost of running a final salary pension scheme is an obstacle that many employers will want avoid”.
Employees need to take action now. Mike says “Everybody should have a good look at their own pension benefits accrued from current and previous employment regularly”. Mike goes on “I am always surprised when people tell me that they are retiring soon and they want me to review their pension because nobody has looked at them for 10 years or so. In some cases never”.
With a reasonable period of time action can be taken to ensure the pension benefits you are entitled to can be taken in a way that suits you. If left to last minute the number of option open are reduced.
June 2009
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