Cash ‘a better option’ than paying into pension
Recent falls in equity markets have left many members of defined contribution (DC) pension plans in a worse position than if they had simply invested in cash, according to new analysis by PricewaterhouseCoopers (PwC).
Denise Twomey, senior manager with PwC’s pension solutions group, said that defined benefit (DB) pension schemes had more visible problems, but that the most widely used alternative, DC pensions, would ‘‘leave many workers with an inadequate income in retirement’’.
DB schemes are those where the benefits are calculated according to a set formula, usually relating to years of service and earnings. With DB schemes, the employee is guaranteed a...
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