Nobody questioned Pension Schemes for years and everybody just thought great I have a pension, however now with the markets crashing and dare I say poor management of Scheme Investments leading to plans being massively insolvent, people are now beginning to question why give 5%-10% of my salary to a Scheme where there is no legal obligation on the employer to make it solvent.
I would guess that for the majority of DB plans the current active members are contributing to pay existing pensioners, with reducing workforces it is very hard to see how there will be anything left in the pot for Johnny 25yr old when he retires in 40 years (unless his employer is willing to contribute at crazy rates to maintain solvency). Don't get me started on DC plans, I would rather take my chances with buying 100 lottery tickets a month.
The Pensions industry in Ireland is a a disgrace, we have one or two big administrators who act as trustees and investment consultants (Independence???) combined with a couple of financial institutions offering the same products. Can anybody tell me how it is allowed for companies to be trustees, administrators and consultants of the same plan? where is the independence? can we really expect them to do what is best for the plan members even if it means losing one aspect of the Schemes business?
Sorry for the rant!