Employees 'set to benefit' from new pension reforms
The 2012 pension reforms will see the majority of employees benefit from auto-enrolment into occupational pension schemes, the government has claimed.
According to a study conducted by the Department for Work and Pensions, over 95 per cent of people will receive more back than they put into the scheme.
The Savings for retirement: implication of pensions reforms on financial incentives to save for retirement document also states that 70 per cent of savers can expect to receive twice as much as they contribute, Employee Benefits relays.
Pensions minister Rosie Winterton said: "This report makes clear that most people can expect their savings to make them better on in retirement."
She added that the study shows the government was "absolutely right" in its decision "to introduce auto-enrolment in 2012".
A spokesperson for ClickAJob advises that wherever possible employees should set up their own pension scheme as an additional safeguard.
"It's not just allowing for uncertainties in the future, it's a good way of forced saving for yourself too," he says.
"With your own portable pension scheme - on top of any plan your company may offer and the government itself - you are unlikely to have any problems with funds running short when you really need them."
"Plus of course, it's your money - you're the one making contributions - and you can use it for emergencies if ever they happen," he concludes.
Meanwhile, new research conducted by PricewaterhouseCoopers has discovered that 90 per cent of firms are concerned that they may be asked to increase their contributions to their pension schemes at a time when money is tight.