Occupational scheme double whammy

The market shift towards defined contribution schemes will accelerate over the next few years due t...

The market shift towards defined contribution schemes will accelerate over the next few years due to the lengthening mortality of pensioners, according to Phillips & Drew. The group said an unprecedented surge in mortality improvements in the generation of people at or nearing retirement has not been fully recognised by many pension schemes, with some underestimating liability by up to 30%. This is leading many employers to look at defined contribution schemes in order to lessen the liability in matching increasing pension contributions. It could also lead to a cessation of pension con...