Pension schemes face ?70bn shortfall
UK’s defined benefit pension schemes face a ?70bn funding shortfall after plunging ?7bn further into deficit
UK defined benefit pension schemes now collectively face a £70bn billion
funding shortfall – more than triple the £20bn deficit of the start of the year,
Company defined benefit schemes, including final salary pensions, plunged
another £7bn into deficit as a result of a 6% fall in equity markets this week
as traders responded to the collapse of US investment bank Lehman Brothers,
Press Association reports.
‘UK pension schemes are facing the triple pressure of declining equity
values, lower income from dividends, and increasingly cash-strapped employers,’
Marc Hommel, PwC pensions partner, said.
The current pressure on defined benefit schemes is expected to accelerate the
rate of closure to new members or future accruals.