Pension Deficit Affecting Younger Generation

May 25th, 2017

The deficits in employers’ defined benefits pension schemes are hurting younger workers, says the BBC, citing research by Resolution Foundation. In 2016, UK firms spent 24 billion trying to plug the deficits in their pension schemes, restricting the amounts they pay employees. Resolution says this costs the average worker 200 per year. Reducing deficits benefits older employees, but younger people won’t benefit because half the UK’s 6,000 defined benefit schemes are closed and a third don’t allow any new contributions