UK Politics

Liberal Democratic Party: Government’s pension reforms won’t stop slow death of final salary schemes – Webb

Press Release   •   Jan 05, 2010 10:52 GMT

"Ministers can’t confirm that all savers will be better off," said the Liberal Democrat Shadow Work and Pensions Secretary.

Commenting on today’s report from the Association of Consulting Actuaries on the deteriorating state of defined benefit pension schemes, Steve Webb said:

“The Government’s new personal accounts will not solve the problems caused by a low level of savings, nor will they help stop the slow death of final salary pension schemes.

“Even with the new employer contributions, ministers can’t confirm that all savers will be better off and they certainly can’t promise that this will offer a better return than rival investments.

“The decline of defined benefit schemes means we need more flexible pensions that will encourage people to save. 

“All this makes a more generous state pension even more important to ensure a decent standard of living in retirement.”