You are here: Home - Uncategorized -

Pensions ‘threaten’ employers’ survival

Written by:

Some companies find their pension obligations so onerous that they are ’threatening’, and they might face bankruptcy if they were to improve the status of their pension fund, a report has warned.

The warning has come from the Pensions Regulator and the Pension Protection Fund (PPF), which have published their first survey of pension fund finances.  

The survey shows that 58% of defined benefit schemes (where pensioners get a proportion of their final salary in retirement) are now closed to new members and 3% have closed completely. The survey sample consisted of 5,722 such schemes, extant at 31st March 2006, with over 12.5 million active, deferred and retired members.

Chairman of the Pensions Regulator, David Norgrove, said: “There is a significant minority of pension schemes where resourcing their pension fund adequately is a very difficult issue and, for some, it is life-threatening.”

Most of the pension schemes surveyed – 83% of them – had a deficit of some description, coming to £76bn, but 17% actually had a surplus, totalling £43bn, a situation that the chairman of the PPF, Lawrence Churchill, found “uneven”.

It was also agreed that more people required pension advice in today’s changed pensions environment.




Related Posts


Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
BT pensions scheme in a hole

Telecoms company BT has announced that its pension fund deficit has widened to £3.4bn and, after taking pension advice, it will...