Small firms in pensions nightmare
13 April 2012
A SECONDARY pensions crisis is sweeping small firms, according to a report by the Association of Consulting Actuaries.
The pension woes of large companies have dominated the headlines. But the situation at many smaller businesses, which employ 55% of the workforce, is even worse.
Three quarters of final-salary schemes at firms with 250 or fewer employees have been advised to raise contributions because they are in deficit. Two thirds have closed to new members.
Gordon Pollock, ACA chairman, said contributions into new plans replacing final-salary schemes are 'worryingly low'.
He added that we face a 'divided nation' with millions on poor pensions while a minority of mainly public sector workers enjoy a comfortable retirement.
