The generous schemes are continuing to close - and their scarcity is also providing employers with a way of retaining their best workers.
The number of generous final salary retirement savings schemes open to UK workers has reached a record low yet continues to fall.
New research from Aon Consulting shows that just one-sixth of the schemes available are now open to new members. By way of comparison, this ratio stood at one in four in 2007 - and at around 50 percent five years ago.
Further findings from the Aon study show that 81 percent of the employers polled are keeping their defined benefit schemes open to further savings from current members. When asked why, the most commonly-cited reason was that firms are retaining the schemes in order to give them the edge over competitors when it comes to retaining workers.
This is because, with generous pension schemes an increasing rarity in the workplace, many employees are looking for good retirement savings benefits as a key factor in staying on with their current employer, rather than looking for a new one.
June Grant at Aon commented: "With the number of final salary schemes plunging to a record low, they have now become gold dust for those employees who still have them.
"Employers can turn this to their advantage because the schemes give them a competitive edge in the fight to attract and retain talent."
Aon derived its results via a poll of UK employers.
Compare savings accounts via money.co.uk
