Employers should not be put off providing pensions as part of employee benefits

Despite recent speculation about the validity of pension schemes, employers should not be put off providing such a savings scheme as part of employee benefits packages.

This is because the recession is simply a blip in the lifespan of a pension fund, a spokesman for Pinsent Masons has said.

Robin Ellison, partner at the firm, said while recent times had been tough, the next few years are set to be much better financially.

"For most people in a pension scheme you are looking [at] over 20 to 50 years and a recession over two or three years. Although it is unpleasant, it shouldn''t make that much of a difference," he pointed out.

He said interest rates would prove to be a much more important factor in the success or failure of retirement funds.

Research recently published by Scottish Widows suggested that pensions savings with the firm were at their lowest level since 2006.
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