Real pensions timebomb is in the private sector

UNISON, the UK’s largest union, today called on the government to take urgent action to protect private sector pensions, after a survey revealed a shocking number were being closed or watered down. With two thirds of private sector workers already shut out of saving for their retirement, action would also protect taxpayers from a spiralling means tested benefits bill. UNISON estimates that taxpayers already face a bill of up to £15 billion for supporting the millions of private sector workers who have not not saved for their retirement – the real pensions timebomb. Dave Prentis, UNISON General Secretary, said: “The real pensions timebomb is in the private sector. Already two thirds of these workers get nothing from their employers towards their pensions - this could cost the taxpayer billions in the future. The situation will spiral even further out of control, if more schemes are shut down and the taxpayer has to step in to cover the cost of supporting even more workers in their retirement. “The government must take urgent action to make sure more schemes in the private sector are not lost or weakened. The new regulations coming in later this year will be too little too late for many who will still have to rely on the state in retirement – the minimum contributions are insufficient to give people enough to live on in their old age.”

*Survey by the Association of Consulting Actuaries.