The pensions sector in the UK is facing some of its biggest reforms in decades, it has been speculated. According to the Fair Investment Company, the government may introduce a number of different measures that could overhaul the sector. It is considering raising the retirement age gradually over the coming years as the coalition government believes it will save £108 billion a year by 2050 if it does this.
This will give workers who do not feel ready to retire yet a chance to stay in work in order to boost their pension funds. The age at which people can claim a state pension may be changed under the proposals. By 2046, men and women will be eligible to claim it from 68, rather than at 65 for men and 60 for women as is the policy currently.
A report released this week by Price Waterhouse Coopers has shown that 94 per cent of employers plan to reduce or close their current defined pensions provisions, and 32 per cent have already closed future accrual to existing employees.
