http://www.bbc.co.uk/news/business-11136463
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| Quote: Workers may need to pay more for their pensions amid a continuing picture of fund deficits, two surveys suggest. Employees of large firms could have to invest more because of the costs of a new system to include more people in company pensions, actuaries warned. Four in 10 companies would reduce future scheme benefits to pay the additional costs, the Association of Consulting Actuaries' survey found. Meanwhile, KPMG said business growth could be hit by pension costs. The accountancy firm said that its analysis showed the UK's largest firms were facing a growing pensions shortfall. | |
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Yes and substantially more. So much so that they will suffer a significant drop in current living standards.
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| Quote: The government is currently reviewing the auto-enrolment plan. Companies will initially only have to pay in 1% of a worker's earnings, rising to a minimum of 3% by 2017. Individuals will have to contribute 4% of their salary to their scheme, with the government topping this up with 1%. | |
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This will make the situation even worse. Companies will dump their liabilities on the tax payer and destroy the state pension. It will be unaffordable for governments to pay. So expect retirement to become the preserve of the rich. Everyone else will have to work till they die. To provide for a long retirement you need a substantial sum in excess of lifetime earnings to provide an income that will be able allow people to retire. With low interest rates you need substantially more to provide the same income.