Britain’s pension schemes have been shown to be the worst in Europe in terms of factors such as poverty rates and income for the elderly, according to a new report. The study, conducted by Aon Consulting, reveals that Luxembourg, Hungary and Spain provide the best pensions respectively.
Donald Duval, chief actuary at Aon Consulting UK, feels that this is due to a difference in governmental attitude between the UK and its European counterparts. Commenting on the fact that a person in the UK would receive around 30% of the average UK wage as opposed to the European average of 60%, Duval said: “In most of Europe, it is believed that the state’s obligation is to ensure that people have a reasonable standard of living, relative to what they had when they were working. In the UK, the role of the state is to ensure that people do not starve.” He went on to say that the move away from state schemes means the UK has the largest funding system in Europe, but recent legislation developments and government scandal have endangered this. In related news, the Financial Times reports that the New Jersey Investment Council, one of the biggest pension funds in the US is seeking private partners to obtain beneficial terms on public and private deals. (fairinvestment.co.uk)