Tens of thousands stung by pension collapses

Up to 65,000 people have lost at least a fifth of their expected pension benefits from under-funded schemes wound-up by insolvent employers, the government has revealed today.

Research by the Department for Work and Pensions also found that within that this figure: at least 60,000 people lost 30%; 50,000 lost 40%; and 35,000 lost 50%.

The study was compiled following government "concerns" that some individuals have "suffered a great deal" through no fault of their own.

In May the government announced the setting up of a £400 million Financial Assistance Scheme (FAS).

Secretary of State for Work and Pensions Andrew Smith voiced his hope that industry will play its part by making a contribution to the scheme.

He added: "The new scheme aims to help those workers who through no fault of their own have lost a sizable amount of their own pension. I have met with a number of people who have experienced terrible anxiety as a result and it is these people I want to help. This research takes us another step along the road to doing exactly that."

Data for the study was collected from some 250 final salary schemes.


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