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Small firms' pension plans under threat
Reported on Fri, 11 Aug 2006
Small businesses in the UK could be looking at business loans after new research reveals that cost concerns are causing small to medium-sized enterprises (SMEs) to cut back on their employee pension provisions.
Companies with less than 250 members of staff are set to reduce their pension allowances, according to the Association of Consulting Actuaries (ACA).
More than 50 per cent of SMEs in the UK have reviewed their pension schemes in the past year, with a further 23 per cent of companies saying they plan to do so in the coming year.
Ian Farr, chairman of the ACA, said: "The survey has found many small firms are valiantly struggling to offer pension arrangements in the face of changes that have added greatly to costs in recent years."
Smaller firms and self-employed tradesmen could be facing further cost pressures as new research from price comparison website uSwitch indicates that utility prices may rise over the next few weeks.
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