Are businesses ready for new pension plan?

There has been a "seismic collapse" in private sector pensions, and the gap between private and public pensions is widening, a report warns.

The Association of Consulting Actuaries (ACA) says that nine out of 10 private sector defined benefit schemes are now closed to new entrants.

From next October, the government's proposed "auto-enrolment" scheme will be phased in.

This means that everyone over the age of 22 earning more than £7,500 a year will find themselves automatically placed in a pension scheme.

But a survey shows that only 26% of businesses have budgeted for the cost of auto-enrolment.

Stuart Southall, chairman of the Association of Consulting Actuaries, says planning for retirement properly is important.