EMPLOYERS TO TRY TO PUSH 2.5m OUT OF FINAL SALARY PENSIONS
More than 2.5m million employees in reliable but expensive final salary pension schemes are likely to be offered inducements to leave by their employers over the next few years.
750,000 are likely to accept the up-front cash on offer, leaving them at risk of being left with second-rate pensions.
Final salary schemes promise a pension based on your pay when you finish working. Generally, the alternative on offer is a stockmarket-based scheme with no guaranteed pension amount.
The figures come from the accountancy firm, KPMG, which questioned financial advisers being used by companies to offer pensions advice to staff.
Of 91,200 employees offered payoffs to leave their schemes over the last 3 years, one in four have taken the money and moved their pensions.
They were given an average of £65,000 to transfer into another pension arrangement.
The pensions minister, Steve Webb, warned in May that employers must stop tricking people into giving up valuable pension rights.