By Marcus Leach
A new report published by LCP shows that many workers are in danger of not being able to afford to retire.
According to LCP this is down to the fact that the decline of final-salary pension schemes is set to continue.
The firm of actuaries also believe that UK employers can save up to £73 billion by simply adopting the consumer prices index (CPI), as opposed to the retail prices index (RPI) in order to protect pensions from inflation.
However, LCP says this move will be beneficial only to employers, and not their staff.
The report goes on to paint a grim picture as far as the financial position of the pension schemes of the FTSE 100 companies are concerned.
"From 2012, as companies face the cost and administrative complexity of auto‑enrolment, further downgrading of existing schemes is likely," LCP says.
"In the short term, this may help the companies' finances but, in the longer term, many people could find that they simply cannot afford to retire."
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