Shifting the burden from employer to employee

Young people in pensions firing line - The majority of workplace final salary schemes - which offer employees a fixed percentage of their salary when they retire - have been closed to new members and replaced with money purchase schemes. Under a money purchase scheme, workers put money into a pension fund which is used to buy an annuity - a financial product which provides an income - when they retire. That means the workers, not the company, is taking the risk.

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