The Trades Union Congress has today said that workers face a “pensions lottery” upon retirement.
Pensions Policy Institute research indicates that a bad year for markets could cost the average male worker more than £250,000 in pension savings. The difference for an average female worker could be nearly £150,000.
According to the TUC, a move towards collective defined contribution schemes would help to protect savers from adverse market movements.
TUC deputy general secretary Paul Nowak said: “Millions of workers face a pensions lottery in retirement. Market jitters can make someone tens of thousands of pounds worse off.”
He added: “The government must allow employers to offer better pensions. Collective pension schemes would help many to have a better standard of living in old age.”
