Employers rake in savings as DB declines

Jenna Towler
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Employers are saving up to £4.53bn a year in pension contributions as millions of employees withdraw from final salary schemes, MGM Advantage research reveals.

  The retirement income firm said there are now some 2 million fewer people in defined benefit schemes than there were in 1995, as employers close schemes as part of cost saving measures. It estimated that had these people remained in DB plans, their employers would have paid around £7.77bn a year into their pensions. However, as many of these people have been moved into defined contribution plans, the company estimated the contribution from their employers is now around £3.24bn a year. It said a growing number of companies are not only closing their final salary pension s...

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