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Money purchase to pay less than state pensions

By Nicholas Timmins, Public Policy Editor

Published: September 28 2007 03:00 | Last updated: September 28 2007 03:00

Most employees stand to receive more from their state pension than from the direct contribution, or money purchase pensions, that have largely replaced company final salary schemes, the human resource consultancy Mercer, said yesterday.

That "may come as a surprise to many", Tony Pugh, Mercer's head of direct contribution pension services said. But it showed the inadequacy of the pensions that most people now reap from occupational schemes.

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