An industry group has commented on the increase in demand for the services of the Pension Protection Fund (PPF).
The National Association of Pension Funds (NAPF) said that trends revealed in the firm’s annual report reflected the industry-wide pressures schemes were facing at the moment.
Earlier this week, the PPF revealed that its deficit had roughly doubled to £1.2 billion.
The news could cause worry among savers, as the fund provides compensation for people whose provider has collapsed.
For its part, NAPF also expressed concern over future costs of the levy through which the PPF is itself funded.
Pension firms all contribute towards a central fund, which is then paid out to individuals in need of compensation.
Joanne Segars, NAPF chief executive, said: "This sharp increase in the PPF’s own deficit reflects the pressures pension funds in general are facing.
"Our members are looking for reassurance about the likely approach in subsequent years and the continuing cost of the PPF levy. The … review on the future of the levy announced in July must ensure that the levy is predictable, fair and affordable over the long term."
Uncertainty over pensions could lead some people to research future alternative ways of raising income levels during retirement.
These include equity release plans, through which value stored in properties can be converted into monthly income payments.
Posted by Claire Ford
