New figures on pensioner incomes have been released by the government.
The 2008 Occupational Pension Schemes Survey shows that active members of final salary workplace pension schemes, which provide strong guarantees of retirement incomes, fell from 2.7 to 2.6 million of private sector workers between 2007 and 2008.
Many final salary schemes have closed over recent months due to the financial pressures of the credit crunch.
Meanwhile, membership of defined contribution plans, which offer fewer guarantees, rose from 900,000 to one million.
Commenting on the findings, Dr Ros Altmann, a former government consultant turned independent pensions expert, said that the number of people in final salary schemes was likely to fall still further in future.
She also said that public sector workers had been "unaffected" by the credit crisis.
"There is a deep and growing divide between pension provision for private and public sector workers," Dr Altmann added.
Retirees who have a smaller income from their pension than had previously been expected can take out an equity release plan in order to improve their financial position.
Posted by Richard Planner
