Pension for surviving spouse and inflation linking threatened under plan to form final salary schemes affordableWidows and widowers could lose their entitlement to payouts from their spouse's workplace pension under proposals outlined by the government to form final salary schemes more affordable for employers.
Firms acquire been closing final salary schemes,also known as defined benefit schemes, in recent years as increased life expectancy, or tall inflation and poor investment performance makes it increasingly expensive to offer a guaranteed payout based on earnings. They acquire been replaced with defined contribution schemes,where the eventual payout is based on the performance of the underlying investments. These are typically the schemes chosen by employers when auto-enrolling staff into pensions.
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Source: theguardian.com