89% of final salary pension plans face ‘funding shortfall’
‘ALMOST nine out of ten final salary pension schemes face a funding shortfall, a report revealed today.
Some 89 per cent of the pensions are in deficit, collectively facing an estimated £130 billion black hole, according to the Association of Consulting Actuaries.
But the problem appears to be easing slightly, with the survey finding the funds were now 85 per cent funded on average, compared with 80 per cent last year.
It blamed increased life expectancy and poor investment returns and said firms were increasing the amount they paid into the schemes to address the problem, while 27 per cent had also paid in significant lump sums. Annual contributions to final salary schemes are now equivalent to 22 per cent of a member’s salary.’
Read more at 89% of final salary pension plans face ‘funding shortfall’
Recent Entries
- Record number of savers look to stash cash in tax-free Isas
- Savings targeted by 43%
- Personal finance advertising lagging behind consumer internet drive
- £1 a week earns 14 years of freedom
- Third of Scots have no more than £100 put away
- Debit accounts can help youngsters learn lessons about money
- £130,000 - the cost of life as a pensioner
- UK set for strong mortgage revival
- Brits break personal finance pledge
- Bankruptcies in Scotland soar by 50%, but worst is still to come