Over half (52 per cent) of employees are concerned that their defined benefit (DB) scheme will not exist by the time they enter retirement according to MetLife, after the last remaining company on the FTSE 100 closed its DB pension scheme to new members.

The third Annual UK Finance Director (FD) report which surveyed 463 businesses with five and more employees, including 63 with DB schemes, revealed that there is a degree of nervousness among employees as many believe that their levels of retirement provision could be affected by DB scheme closures such as the one carried out by Royal Dutch Shell.

MetLife warned that the pensions industry has a vital role to play in ensuring that effective communication strategies are in place so that pension scheme members comprehend fully what the change from DB to DC signifies.

MetLife’s director of business development Emma Watkins said: “Our research on the views of employees and employers shows both need a better understanding of what constitutes adequate pension provision and how to achieve, maintain and protect it.

“When traditional DB schemes do decide that it is time to move into a DC scheme, it is vital that the ensuing benefits are clearly communicated with members to dispel any concerns or confusion.”

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