Massive gulf between pension expectation and reality

Global human resources services firmHewitt Associates, which carried out the survey, says if a system of compulsory contributions was introduced, the majority of people would currently expect to contribute between 5-10% of their salary and for that receive £10,000-£15,000 a year during their retirement. According to Hewitt’s research, a 35 year old paying 5% of their salary into a DC scheme and retiring at the age of 65, could expect to receive less than £5,000 a year in current wage terms. In order to earn £10,000-£15,000 a person of this age would need to either work beyond 80 or incre...