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MONEY COMMENT
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It looks as though more British workers are catching on to the damage being done to their company pensions. These plans are becoming increasingly expensive to run, thanks to falling stock markets and the withdrawal of tax credits on dividends. Thus, more and more firms are closing or amending their pension schemes. The latest figures from the Occupational Pensions Advisory Service (OPAS), an independent pensions organisation, show that increasing numbers of workers and pensioners are worried about the financial health of UK pensions. According to OPAS, written complaints rocketed by 53% and calls to its helpline (0845 601 2923) climbed by over a sixth. Over half of all the complaints received related to administrative problems or the closure of schemes. Enquiries about stakeholder pensions fell by almost three-quarters to 7,380 from 27,770, which may be bad news for the government if this reflects falling public interest. Alternatively, there may be more widespread public awareness of these simple, low-cost products to personal pensions, leading to fewer calls. Clearly, numerous high-profile headlines in the press have alerted many workers to the worrying state of UK company pension schemes, such as this shocking tale. It's hardly surprising that workers are losing faith and trust in their pensions and employers, which may lead to more industrial relations problems. Nevertheless, final-salary company pensions, also known as defined-benefit schemes, are very attractive and it normally make sense to join them, even if you have to pay 5%-plus of your salary to be a member. After all, your employer pays for the running costs of the scheme and takes all the investment risk, leaving you to pick up a guaranteed pension when you come to retire. If your company doesn't offer a final-salary scheme, it must offer a stakeholder plan if it employs more than four people. Before you join any scheme, check how its charges stack up (0.7% a year or less is very attractive.) Finally, if you: you should still consider paying into an individual stakeholder plan. For high earners, some personal pensions offer equally low charges and fair terms but allow you to make higher contributions. More: What Everyone Must Know About Pensions | Visit our Pensions Centre.