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Pension funds 'need more govt support'

Tue 2 Mar 2010 - Published in Pensions

The government should do more to support companies with pension funds, according to an expert.

Last week, Readers Digest UK collapsed because of its £125 million pension deficit, leading to around 1,000 workers fearing their retirement savings could be placed in jeopardy.

Commenting on the situation, Mark Brooks, spokesperson for the National Association of Pension Funds, said it reflects a wider trend of corporate pension pots being placed under increasing amounts of pressure.

Mr Brooks explained that his organisation is hoping chancellor Alistair Darling will use the upcoming Budget to announce greater support for pension funds to tackle the problems.

"The government must do more to help, and we have put forward proposals which would be to abandon their unworkable tax plan, and also look at ensuring that there is enough long-term funding available for pension funds," he commented.

In February, research from Prudential showed that women retiring this year expect an average annual pension of £12,169, while men anticipate £19,593.

It also found that 32 per cent of people believe they will not be able to retire completely because of financial worries.