Many defined benefit pension schemes that are organised by employers are no longer accepting new entrants, new research has revealed.
Some four out of five company pension schemes of this type have followed the trend, a rise from seven in ten in 2005, the Association of Consulting Actuaries' study indicated.
According to the organisation, these results show that the government must take swift and decisive action on its pension reforms, if the workplace pension industry is to survive and flourish.
Ian Farr, chairman of the Association of Consulting Actuaries, commented: "The big downside of the scheme ... is that we are facing the very real prospect of growing 'under pensioning' in respect of millions, particularly the young and middle-aged."
He added that the government's personal accounts must encourage a level of contribution that is in excess of the minimum required in order to redress the inequity.
The government revealed details of the new personal accounts scheme last month, which industry bodies greeted with cautious optimism. Personal accounts were introduced as part of the major pension shake-up that followed on from the Hutton enquiry.
Company pension schemes closing, study shows
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Company pension schemes closing, study shows
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