Personal accounts to wipe out 300,000 pension benefits

The research, based on views from 100 finance directors, shows just under 7% will close existing schemes and replace them with personal accounts. The survey follows widespread concern about employers levelling down pension contributions and shows two in three companies will continue paying current contribution levels beyond 2012. Fidelity highlights a 25 year-old could see their retirement pot worth about £55,000 less at age 65 as companies pay an average 6% of an employee’s salary into a defined contribution (DC) scheme but personal accounts cap employer contributions at 3%. Simon Fr...