Do You Have a Final Salary Pension? You Could Lose Up to One Fifth!

At PWS Dubai we want to warn those final salary pension workers that they are at risk of losing up to one fifth of their income, that is approximately three million workers in the United Kingdom. This is due to the fact that the companies that they work for have made promises that they simply cannot afford.

There is a number of companies who have offered final salary pension schemes and now they are facing serious financial issues due to the fact that they cannot meet the obligations that they promised. This is data based on the Pensions and Lifetime Savings Association report.

Let's face it, there are so many factors affective pension scheme recently and one of the factors is that more people are living much longer than expected, which makes it harder for companies to provide their expensive guaranteed pensions.

The Pension Protection Fund is being used more and more by companies that cannot pay out the pensions that they have promised and have turned to this rescue service to provide staff with the pensions that they need to be able to live when they reach retirement age.

The good news is that those who end up with the PPF will still receive a pension, which reduces the risk of receiving nothing from their company if they cannot afford to pay, but the downside is that they increase their chances of receiving a full fifth lower than they were promised in the first place.

BHS collapse was one of the most recent and high profile cases that saw struggle with final salary pension schemes. This was what highlighted serious concerns regarding pensions in the workplace. Studies have shown that companies that are most vulnerable has a fifty fifty chance of having an insolvency against them in the thirty years ahead.

There are more than eleven million people who are relying on their defined benefit pension schemes in the United Kingdom. It is essential that anyone with a pension scheme identifies the type of scheme that they are on and seeks financial advise to ensure that they will receive the best outcome in the future.

It is important to note that while there are companies, some of whom are big names in the UK, that are struggling to meet the final salary pension promises, there are those that will easily be able to fulfill their promises to their staff in the long run.