LONDON - In a new twist to the pensions saga, the Office for National Statistics said on Thursday that less than half of Britons in the working age group are contributing anything above the basic state entitlement to their pensions accounts.
The percentage of men who actually contribute to private pension schemes has come down from 52 per cent in 1999/2000 to 48 percent in 2003/04, according to the ONS. The number of women saving for their pensions increased to 40 percent over the same period.
These findings are a part of the Pension Trends publication, a report brought out by the ONS to give a meaningful turn to the pensions debate. The report says that in 2003 there were 3.3 people of working age for pensioner in the country. This figure is set to fall to 2.3 percent by 2051, estimates the ONS.
It was also found that the number of men who have a second tier pension over the basic state pension topped 12.1 million out of 13 million in 2002/03. Concurrently, number of female employees without such coverage dipped from 5.6 million in 1978/79 to 3.1 million in 2002/03, the ONS said. "Pensions will have to be paid to more people for longer periods of time," said the report.
This is true since people are living longer and require more funds to sustain themselves over a period of time. Employers, unions, government and the pensions industry are all debating the best way to provide adequate pensions that will last into last old age. The independent Pensions Commission led by Adrian Turner is scheduled to submit its final report in November.
Posted
on : Sat, 29 Oct 2005 18:20 GMT | Pensions News
By : Salim Patel
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