News Article - 24 May 2012
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Employers could be deterred from offering certain kinds of pension schemes to workers if pension liabilities are increased in order to control costs, the National Association of Pension Funds (NAPF) reports.

According to a spokesperson for the pension association, "increases in liabilities alongside increasing regulatory costs may cause the employer to change the type of pension they offer their employees" in order to maintain their business health.

"The key issue for employees is that the payment promises that are made are met," he explained. "Increases in liabilities will tend to be of more concern to the employer."

Companies are finding it harder to provide adequate retirement provisions as the UK population ages and employees are urged to start careful planning about retirement savings "from their late teens' to early twenties".

The Office for National Statistics stated in its Occupational Pension Schemes Annual Report that the number of schemes in Britain fell to 37,540 in 2006, just 60 per cent of the figure for 2000.

SME accounting software can provide small businesses struggling to manage their pension schemes with an effective way of keeping track of their liabilities.

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