UK. It may be a case of prepare a proper pension or prepare for poverty
Pensions are undergoing some radical changes. Many more workers are accessing pension schemes through auto-enrolment, even if the adequacy of many of these schemes is poor. Good quality Defined Benefit (DB) – where you know what you put in and what you’ll get out – schemes are being replaced by often poor quality Defined Contribution (DC) – where you only know what you’ll put in, not what you’ll get out. DC schemes shift the investment risk from employers to workers, who are ill prepared to understand or take those risks.
The UK Government has just published a Green Paper on Defined Benefit schemes. Perhaps surprisingly, it paints a more positive picture than you might expect. It confirms that there is no general affordability crisis in pensions and the system for protecting scheme members’ benefits is working broadly as intended.
Full Content: The Scotsman
