Qualified advisers answering your
Financial Questions
call 0800 092 1245

Final salary pension schemes under more pressure

A report by KPMG has suggested that around 22% of UK FTSE 100 companies will be unable to pay off their current pension fund deficits in the future. Such is the seriousness of the situation that every four pounds from each five pounds paid into final salary pension schemes in the future will be used to pay off deficits. This is a damning indictment of the final salary pension scheme and is certain to be the final nail in the coffin with some schemes set to close and more and more schemes to remain in deficit for some time to come.

In what is being described as the "tipping point" we are at a very significant crossroads for the UK pension fund industry and the UK government and regulators need to become involved. We are literally talking about the future income of pensioners being at risk and while changes should have been made in the past, to avoid such a situation, the authorities really do need to step in.

We are getting towards a situation where companies are struggling to maintain cash flow for their underlying businesses simply because of the deficits on their pension schemes. Pressure from workers and pressure from regulators will see more and more shareholders lose out and cash flow issues appear in many areas of the UK economy.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details