Defined contribution pension system pushes low earners into bad decisions

Defined contribution pension system pushes low earners into bad decisions

The absence of advice and confusion over access means lower earners lose money, new research finds.

A new study suggests that our pension system is actively leading to poorer outcomes for those on lower incomes.

The days of Defined Benefit pension schemes, where savers enjoy a guaranteed income in retirement, are largely behind us.They have been mostly replaced by Defined Contribution (DC) schemes, where pension contributions in workplace pensions are invested in the stock market.When savers then reach retirement, they have decisions to make over what they do with that pension pot.It was previously all but guaranteed that savers […]

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