Around 1,000 private sector pension schemes, including 25 of the largest in the UK, are “highly unlikely” to pay their members’ pensions in full, new analysis suggests.
According to The Times, the findings published by research body the Pensions Institute (PI) suggest the number of troubled pension schemes is far higher than officially acknowledged.
Around 600 of the schemes “will never pay full pensions”, while 400 risk seeing their sponsoring company collapse as the pension scheme deficit rises, the PI said.
Pension scheme liabilities have swollen to £1.1 trillion and have been worsened thanks to a range of factors including quantitative easing, which has led to historically low gilt yields that increase the cost of a pension promise, the report suggests.
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