According to the OECD, British pension company returns fell 0.1 percent every year between 2001 and 2010, whilst nearly all other developed countries saw their pension pots swell – with Spain and the USA being the exception.
Within its OECD Pensions Outlook 2012, which reveals the performance of pension schemes throughout the developed world, the OECD pointed to a growing role for private pension firms within the UK, in closing the gap between pre and post retirement.
The OECD also suggest within their Pensions Outlook 2012 that the introduction of auto-enrolment pensions to the UK later this year, for all workers not currently covered by private pension plans, should increase the uptake of occupational pension schemes.
Following the release of the figures, Policy Director at the National Association of Pension Funds, Darren Philp said: “Investment performance has been very poor because of the exceptionally weak worldwide economic environment. UK funds are broadly in line with the global average but that performance is disappointing nonetheless.
“Final salary pension schemes have generally been moving out of equities in recent years as they attempt to trim their exposure to risk.”
He added: “The UK will struggle to pay for its retirement and the weak returns of recent years make it even more important that we improve these pensions. Strong workplace pensions are a must.”
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