Wood warns that a mass exodus from DB schemes and stricter solvency rules imposed by the EU will accelerate plans for closure of remaining private sector final salary schemes.
Wood says: “The Chancellor today refined and clarified the fiscal consequences of saving for retirement. Nothing here will cause a change of heart among those intending to exit their defined benefit occupation pension schemes to make use of the flexibility introduced in the March Budget.
“The threat of solvency rules imposed by Europe together with what we should expect to be a mass exodus from DB schemes is already causing many employers to consider accelerating their plans to wind up these final salary schemes. For the majority of those yet to retire, the concept of a pension has all but disappeared.”
