US - Low income earners have a far higher likelihood of not saving for retirement and many of those currently entering the workforce face the prospect of having zero savings, according to a report by the US Government Accountability Office (GAO).
The report found that low income workers were less likely to participate in DC schemes, even when offered the opportunity to do so.
The most important finding of the report concerned projected retirement savings for the generation born in 1990. The report stated that by the time today's young workers reach retirement, over one third (37%) would have no pension plan savings of any kind.
Among the lower earners of this generation, the GAO projected almost two thirds (63%) would reach retirement age without any kind of pension savings.
As a contrast, in 2004, some 36% of private sector workers were members of defined contribution (DC) pension schemes, with a median average plan saving of US$22,800. For workers aged between 55-64, this level was $50,000, rising to $60,600 for workers aged 60-64.
The GAO said: "Our findings indicate that DC plans can provide for a meaningful contribution to retirement security for some workers but may not ensure the retirement security of lower-income workers."
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.