Public and private pension gap rises say ACA

Published on Tuesday, 03 January 2012 09:16

Posted by Scott Buckler

There has been a "seismic collapse" in private sector pensions, and the gap between private and public pensions is widening, a report warns

The Association of Consulting Actuaries (ACA) says that nine out of 10 private sector defined benefit schemes are now closed to new entrants.The ACA wants bold government action to reinvigorate workplace pensions.

Automatic enrolment, set to begin later this year, would enable millions of people to save, the government said.But Stuart Southall, chairman of the ACA, said that while automatic enrolment should widen private sector pension coverage, "the fact that recently the government had to delay its introduction for smaller employers, because of the deteriorating economic climate, is discouraging".