Monday 23rd June 2008
An "exodus" is currently taking place away from defined-benefit pension schemes, according to PricewaterhouseCoopers (PwC).
The analyst reveals that 16 per cent of the organisations surveyed have already closed their schemes to new applicants.
Another 11 per cent predict that they will do so in the future - equating to more than one in four of the 86 businesses queried.
However, PwC warns that defined benefits are among the types of product capable of attracting talented workers into a particular role.
Marc Hommel, partner at the firm, says: "Pensions play a critical role in attracting and keeping the top-performing individuals.
"There has been a mass transfer of risk from employers to employees in relation to retirement savings."
He adds that employers should do more to support their staff in order to ensure they are able to navigate a safe course to retirement in light of this "sea change".
The guidance comes as financial services provider Standard Life has urged Britons to "inflation-proof their income" in preparation for retirement.
A typical £80,000 level annuity will fail to provide any spare income for retirees within 20 years, according to the organisation.
By that time, based on official government statistics, Standard Life anticipates that only essential costs would be covered by pension holders monthly income.
Senior pensions policy manager Andrew Tully explains that those approaching retirement face a "stark decision".
This sees them forced to choose between a level annuity which devalues over time due to inflation, or an index-linked product which provides a smaller initial income but rises in line with the economy.
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