24-04-2008
Report claims workers don't know about pension crisis
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Many workers in all sectors of industry are failing to understand that their pensions may not be enough to pay for a decent retirement, according to a report by MPs.
A meeting of the public accounts committee concluded that the Pensions Regulator - as well as business owners - is at fault for not clarifying a "widespread lack of understanding" about how much money workers will receive as part of a pension.
The confusion arises from the phasing out of final-salary schemes, being replaced by defined contribution pensions - with workers unaware that these types of pensions do not offer the guarantees that final-salary pensions do, the Daily Mail reports.
Edward Leigh, chairman of the committee, said: "[The Pensions Regulator] must also do more to remedy the widespread lack of understanding of defined contribution schemes by members."